Mexico fruit photo

(WND.com) President Donald Trump has floated the idea of a border tax or border “adjustability” with Mexico to raise the revenues needed to fund construction of a border wall along America’s southern border, but the leader of the nation’s largest grassroots taxpayers group says the president must be careful not to punish American consumers.

“This is a very confusing and intricate issue, probably the most complex aspect of the tax-reform discussion right now,” National Taxpayers Union President Peter Sepp told WND and Radio America.

Among his first actions as president, Trump authorized construction of the border wall and once again vowed that Mexico would pay for it. After the Mexican president dismissed the idea, Trump and White House Press Secretary Sean Spicer both discussed the idea of a border tax on Mexican imports as high as 20 percent.

But Sepp said it is unclear whether they are referring to an actual border tax or a concept known as border adjustability.

“What we’re really doing here is reading tea leaves. This is a teacup that goes very deep,” Sepp said. “We’re having a difficult time telling exactly what the administration wants to do here.”

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The answer it critical because Sepp said the difference between a straight tax and border adjustability is significant. He said an actual border tax would not be good news for working Americans, since Mexico can simply pass along its higher costs to the people who buy its products.

“Taken in isolation, a border tax, where you have a trade deficit with a given country, you slap a tax on its goods coming into the country that’s aimed specifically at them, that could result in consumers having to pay more out of their own pockets here in the United States,” Sepp warned….

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