Third, because the Cruz and Paul plans are "border adjustable": Imports are taxed at the flat rate when they are brought into the U.S., but American products sold abroad are not taxed at all.
What is the manner by which imports would be taxed? As an example, wouldn't a Toyota's price increase by the amount of the corporate rate? And nearly everything purchased at Walmart? I'm ok with taxing imports and reducing taxes on exports, clearly more domestic jobs there, can someone explain this a bit further?
“No tax exemptions for anyone.”.....
Does “anyone” include all the politicians?
If a tax is border adjustable, it means two main things...that taxes on goods manufactured domestically have no tax costs in them at export and that imported goods will have our federal tax added to it.
Our US income tax is not border adjustable (WTO rules) but most other countries that export to us do have border adjustable taxes (Japan, China come to mind but I’m not an expert).
The results are predictable; the US market is a gold mine...sell your stuff in the US and pay no tax on the item. So Toyota for example has a lot more room in profit to play with than Ford. In that example, Toyota is making “double” (not double in quantity but you get my meaning) profits...
So to your question, if we had a border adjusted tax system, Toyota would have to absorb tax costs on the cars they sell here. That will either make their cars price higher to absorb the tax costs or they decrease profits to absorb the tax costs or more likely there will be some combination of both.
In any case the good far outweighs the bad IMO.