The idea of the border adjustment tax is getting a lot of coverage despite the fact that the Congressional GOP has not built a consensus around the concept. Despite the name, the border adjustment tax is not a mere tariff. Rather, the BAT would allow tax deductions on US exports and impose a tax on foreign imports with the stated goal of creating an even playing field for US manufacturers and exporters. There are concerns that a current version of the BAT proposal would not comply with WTO rules. Furthermore, a number of GOP senators are skeptical of the BAT concept.
A month into the Trump administration, some commentators are indicating that the chance for tax reform is slipping away. It seems a bit early to conclude the idea that a GOP Congress and a Republican in the White House will miss an opportunity for significant reform. As the tax reform talks unfold, we will see if BAT is part of the plan.