Gluskin Sheff Economist Gives Thumbs Down to Border Tax

The video discusses the border adjustment tax and its implications on trade deficits, GDP growth, and corporate tax reform. It explores market reactions, economic implications, and the potential impact on fiscal deficit. The discussion also covers market expectations, economic recovery, and other factors influencing the markets, such as deregulation and geopolitical events.

What is the primary concern about the border adjustment tax according to the speaker?

• It will decrease corporate taxes.

• It will increase trade surpluses.

• It will be welcomed by economists.

• It is a form of trade protectionism.

What is a major bottleneck in passing a tax reform bill?

• Increasing the fiscal deficit.

• Ensuring the bill is revenue-neutral.

• Simplifying the corporate tax system.

• Reducing the GDP growth rate.

How does the Federal Reserve view an increase in the fiscal deficit?

• It will not accommodate any increase.

• It will ignore the fiscal deficit.

• It will accommodate any increase.

• It will support a moderate increase.

What could cause the market to become impatient with the new administration?

• A relapse in the economy.

• A lack of tax reform in six months.

• An increase in trade surpluses.

• A decrease in corporate earnings.

Besides tax reform, what other factors are influencing the market according to the speaker?

• Only corporate tax rates.

• Only fiscal deficit changes.

• Only trade deficits.

• Deregulation and geopolitical events.