While on the campaign trail, President Trump outlined a tax plan that borrows heavily from the Republican Party’s “Blueprint on Tax Reform” released in June 2016. While the blueprint and President Trump’s proposed tax reform policies are closely aligned, there are differences between the proposals.
Border adjustments were not originally part of President Trump’s reform plan, although recent reports suggest he may be considering it. The border adjustment seemingly intends to promote U.S. growth and encourage domestic production by exempting income from U.S. exports from tax and taxing imports (including all products, services, and intangibles).
Nothing has been finalized yet. If prior tax reform efforts are of any indication, the process will not be fast moving. However, President Trump has stated that tax reform is a priority for 2017 and the political climate is favourable for changes to be made.