The Commerce Dept. will be at the heart of another crucial item on the White House agenda: tax reform. As our friend David Wyss of S&P explains, U.S. taxes are out of step with the rest of the world. In most countries, taxes are levied where goods are sold. In the U.S., they are collected where goods are produced. So if a company produces something in the U.S. and exports it to Europe for sale, it's taxed twice. That leads to higher prices on U.S. exports. It also cuts into the profit margins of U.S. producers. To make matters worse, companies that produce goods in Europe and export them for sale in the U.S. are essentially except from taxes. As the U.S. embarks on major tax reform, the Commerce Dept. will play a big role in advocating the end of double taxation on U.S.-based producers.
Before it's here, it's on the Bloomberg Terminal. LEARN MORE