10 Highest Income Tax States For 2016The phrase "border adjustment tax" has been in the news recently, with it being a part of the GOP’s “A Better Way” Blueprint (available here). What exactly, though, is a border adjustment tax? In a nutshell, a border adjustment tax means that a tax is levied on imports (goods made overseas but sold in the United States) and exports are not taxed (goods made in the United States but sold elsewhere). At bottom, a value-added tax is a consumption tax (meaning its effectively borne by the end consumer), which is generally collected as a percentage of sales price. Because the tax should ultimately be paid to the country of consumption (i.e., the destination), this requires adjustments at the borders for imports and exports—hence, the phrase “border adjustment.”

Source: Forbes January 17, 2017 16:18 UTC