Harvard's Marty Feldstein Says Border Tax 'Misunderstood'

The video discusses the proposed border adjustment tax by President Trump, highlighting a warning from the New York Fed about its potential impact on US imports and exports. A professor disagrees, arguing that critics misunderstand the tax's effects, particularly how it would not raise consumer prices or lower American business profits. Instead, it could generate significant revenue from foreign exporters, aiding corporate tax cuts. The discussion also covers potential price adjustments, economic implications, and the risk of retaliation, emphasizing the importance of collaboration between Congress and the administration.

What are the potential effects of President Trump's proposed border adjustment tax on US imports and exports?

According to the discussion, why do some critics misunderstand the effects of the border tax adjustment?

What is the significance of the revenue generated from the border adjustment tax in relation to corporate tax cuts?

What adjustments do economists expect to see if the border tax adjustment is enacted?

How might the border adjustment tax affect foreign companies selling to the US?