Fed’s Dudley calls border adjustment tax risky

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NEW YORK — The National Retail Federation is applauding remarks by Federal Reserve Bank of New York president and chief executive officer William Dudley, who during a session at NRF’s annual expo and convention this month said a proposed border adjustment tax would have “unintended consequences” for consumers.

“Mr. Dudley and retailers are in agreement: a border adjustment scheme would be a risky experiment for the American economy,” said David French, NRF senior vice president for government relations.

“Economic theorists are playing with fire, and it’s the consumer who ultimately will lose,” added French. “We are pleased to hear Mr. Dudley voice his support for corporate tax reform. The best way to grow our economy is for Congress to lower tax rates for all businesses, not pick winners and losers.”

In a keynote session at NRF’s Retail’s Big Show on January 18, Dudley was asked about his views on the border adjustability provision in the “Better Way” tax reform plan offered by House Speaker Paul Ryan of Wisconsin and his Republican colleague Rep. Kevin Brady of Texas, who chairs the Ways and Means Committee. “That type of adjustment proposal [which taxes imports but not exports], it’s a pretty dramatic change,” Dudley said. “I think it will probably lead to a lot of changes in the value of the dollar, the prices of imported goods in the United States. I’m not sure that would all happen very smoothly, and I think there could be lots of unintended consequences.”



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