Hogan Lovells Publications | International Trade Alert | 02 February 2017

House Proposal for Border Adjustability and Relevant WTO Rules

Last year House Speaker Paul Ryan, R Wis., and House Ways and Means Chairman Kevin Brady, R-Tx., proposed the "Better Way" Blueprint (Blueprint) that would change the U.S. corporate tax system to a consumption-based, territorial tax system.

Border tax adjustability is also an important component to the Blueprint because it could provide a basis for the Congress to slash U.S. corporate tax rates, while minimizing revenue losses or avoiding offsetting tax increases elsewhere in the U.S. tax code. But, border adjustability also will be scrutinized closely to see if the proposal conforms to U.S. WTO obligations.

Click here to learn more about how this proposal may affect the reform of the U.S. income and corporate taxes.

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