President Donald Trump appears to be inching closer to endorsing a border adjustment tax that stands as a cornerstone of the House GOP's plans for corporate tax reform.
On Thursday, White House Press Secretary Sean Spicer caused a stir when he suggested that the U.S. could impose a 20 percent tax on Mexican goods, as part of one possibility to pay for Trump's proposed border wall. The wall proposal created a diplomatic firestorm, and caused Mexican President Enrique Pena Nieto to pull out of a meeting with Trump next week.
The description by Spicer was cloaked in protectionist terms, and described as a 20 percent border tax on Mexico. Although his remarks were interpreted by some as a border tax, the proposal outlined by the White House spokesman actually echoes a plan floated by House Speaker Paul Ryan—which would suggest a border adjustment tax that differs from an ordinary tariff.