, Columnist
Forget the Border Levy. Here's the Really Big GOP Tax Idea.
Ending deductibility of corporate debt would shake up markets -- and eventually help stabilize the economy.
Not a bank? Not so much debt.
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Most of the debate about corporate tax reform has centered on what’s being called the border adjustment. Instead of taxing profits based on where a company is owned, the new system being proposed by congressional Republicans would tax them based on where the sales were made, effectively giving a subsidy to exports relative to imports.
But as important as the border adjustment is, it might not be the most significant change in the tax reform plan. The House plan would also fundamentally change the way that U.S. corporations finance themselves, wreaking huge changes in U.S. financial markets in the process.