Your Economics Major Topic: Border Tax Adjustment

Border tax adjustment
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Concerns that American businesses may be facing unfair competition from other countries highlight the dilemma faced policy makers and legislators who seek to protect American business and jobs and citizens trying to improve their standard of living. Supporters of the border tax adjustment argue that this will surely improve the economy, but they fail to recognize that communities in the border regions are more interconnected than ever before. Subsidizing the US exports and slapping higher taxes on imports may not achieve the intended targets (Roubini, 2017). The adjusted border tax is untested and there is no guarantee that all the American workers will benefit.
With the adoption of NAFTA the inter-trade figures between the US, Canada and Mexico have increased over the two past decades. In the manufacturing industry, their components may originate from all the three countries, even when the industry is located in the U.S. An implication of this is that the border adjustment tax would also affected businesses in the region without addressing the problem of dumping or the risk of economic ret...