A Republican plan for tax reform could be worse for the American economy than previously thought, according to an estimate published Monday by the nonpartisan Tax Policy Center.
In a fresh look at a tax plan being pitched by House Speaker Paul D. Ryan, the center estimated the proposal could reduce growth in the gross domestic product by 0.5 percent after a decade and by 2.6 percent after 20 years.
Ryan's proposal calls for imposing what on paper would be a new tax on imports and exempting any exports from taxes. Skeptics say that this provision, known as a border adjustment, would make goods imported from around the world more expensive for American consumers, eating into any tax cuts the plan would grant middle-class families. The plan's supporters say that fluctuations in global currency markets would cancel out the new tax on imports.
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