Tom Barrack, head of Donald Trump's inaugural committee, believes any "border adjustment tax" that's put in place will ultimately come in at only 10 percent — not the 20 percent that's been discussed — when corporate tax reform is all said and done.
"I think you'll see a compromise on the personal income tax rate, the corporate income tax rate, the repatriation rate, tied to an investment tax credit, and that border tax, instead of 20 percent ... maybe 10 percent," Barrack, a private equity investor and head of Colony Capital, told CNBC's "Squawk Box" on Wednesday.
Currently, U.S. corporations are taxed on their worldwide profits at 35 percent. A House GOP plan would change that radically, however: As it stands now, that proposed formula would tax domestic revenue (minus domestic costs) at a much lower rate of 20 percent. The net effect would be one that favors exports over imports.