WASHINGTON—An American tax authority who helped champion a reform now being considered by the U.S. Congress says Canada would not be among the countries hardest hit by the introduction of so-called border adjustments.
Alan Auerbach is among the leading proponents of the push to restructure corporate taxes so that companies stay home and declare taxes there, instead of shifting profits abroad.
The Berkeley economist has written papers over the years calling for destination-based taxation—that’s to say, if a product gets sold to Americans, the corporate taxes should be paid in the United States.
That policy is now the favoured approach of Republicans as they prepare a once-in-a-generation tax reform in the U.S. Congress, though the idea crosses partisan lines—Auerbach laid it out six years ago in a paper for the left-leaning Center for American Progress.
