Demystifying the Destination-Based Cash-Flow Tax
This paper describes the Destination-Based Cash-Flow Tax (DBCFT), as proposed in 2016 by Republicans in the US House of Representatives, and its potential economic effects. As a new approach and a major departure from the existing business tax system, the DBCFT and its motivation have been poorly understood by many in government, the business community, and the economics profession.
This paper was originally prepared for the Brookings Panel on Economic Activity and presented at its Fall, 2017, conference. I am grateful to Dhammika Dharmapala, Bill Gale, Mick Keen, Drew Lyon, Peter Merrill, Jim Stock, John Vella, Alan Viard, and conference participants for comments on earlier drafts. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
Alan J. Auerbach
Member, Board of Academic Advisors, International Tax Policy Forum
Alan J. Auerbach, 2017. "Demystifying the Destination-Based Cash-Flow Tax," Brookings Papers on Economic Activity, vol 2017(2), pages 409-432. citation courtesy of