Citigroup's Lee Says Border Tax Has Immediate Distortions

What is one of the main challenges in implementing the border tax according to the first section?

• Lack of support from the public

• Difficulty in distinguishing imports and exports

• Insufficient government funding

• Opposition from international trade partners

How long does it typically take for exchange rates to react to changes in the balance of trade?

• One year

• Ten years

• Instantaneously

• Five years

What financial impact does the absence of the border tax have on corporate tax reform?

• It eliminates the need for reform

• It reduces the cost of reform

• It has no impact on reform

• It increases the need for alternative revenue sources

What is a likely corporate response to tax changes, as discussed in the final section?

• Expansion of production capacity

• Reduction in workforce

• Distribution of extra funds to shareholders

• Increase in capital investment

What is one controversial aspect of the proposed corporate tax strategies?

• Elimination of depreciation

• Increase in corporate tax rates

• Reduction in shareholder dividends

• Expansion of government subsidies