Lars Powell and two other analysts at the think tank write about how a BAT might affect the U.S. life and annuity markets in a new commentary posted on the R Street website.
R Street promotes a free-market approach to financial services regulation.
Some policymakers in Washington, including officials in President Donald Trump’s administration, have talked about the possibility of using a new BAT system to raise money for building a wall between the United States and Mexico, and for other projects.
A BAT system would eliminate federal income taxes on the foreign income that U.S. companies earn. The system would also eliminate U.S. companies’ ability to deduct the cost of goods and services purchased from overseas from taxable revenue.