VIA: LA TIMES
President Trump threw trade experts for another loop Thursday by endorsing — or seeming to endorse — a new tax system for imports and exports that he said would “reduce our trade deficits (and) increase American exports.” Not so incidentally, he also said it “will generate revenue from Mexico that will pay for the wall.”
The tax would help pay for the wall he intends to build on the Mexican border to keep illegal immigrants out, which is estimated to cost as much as $14 billion.
He appeared to be buying into a proposal by House Republicans for a “border adjustment tax,” though his spokesman later said it was one of several options being considered. Under that plan, exports from the United States would be tax-exempt, but imports would be taxed at the border. This would tend to discourage imports by making them more expensive for American buyers, and make American goods cheaper to sell overseas, with a goal of whittling away at the nation’s annual trade deficit of more than $330 billion.