Another prominent critic of a "border adjustment tax" emerged Tuesday: the president of the New York Federal Reserve.
Bill Dudley was asked by Macy's CEO Terry Lundgren at a meeting of the National Retail Federation trade group what he thinks of the idea of a border adjustment tax, which involves taxing imports at 20 percent, while making U.S. exports tax-free.
GOP leaders in the House of Representatives are pushing the tax idea as part of their "Better Way" blueprint. The biggest U.S. retailers, which are largely in the business of shipping in products from Asia and selling them to American consumers, is strongly opposed to border adjusted taxes.
The New York Fed president agreed that such taxes would mark a "pretty dramatic change."
"I think that it will lead to a lot of changes in the value of the dollar, the price of imported goods in the U.S., and I'm not sure that would all happen very smoothly," Dudley said. "I also think there could be a lot of unintended consequences."