Destination-Based Taxes – The Sneaky Tariff

  /  Feb 1, 2017  /  

There has been a lot of rhetoric out of Washington about tariffs, tax cuts, loosening regulations, infrastructure spending and other buy-America, pro-manufacturing policies over the past few months. The Trump administration proposed to boost growth to 4% and to create millions of jobs. What gets lost in a lot of the hype are actual policy specifics. One issue that is receiving attention, but is largely overshadowed by the catchier news about wall building and immigration, is the idea of a destination- based tax (or border-adjustment territorial tax). This scheme was proposed by Republican Congressional leaders, and given their control of the House, Senate and White House, its likelihood of getting approved is higher than ever before. If passed, it could have a tremendous impact on the steel industry, both positively and negatively depending on your customers, suppliers, and certain other factors.