Amid the swirling political winds of the early days of the Trump
administration, there is growing speculation that the President may
throw his support behind the House Republican Conference's
"Better Way" Blueprint (the Blueprint) for tax reform in
the United States.
While President Trump's enthusiasm for the Blueprint has
appeared to ebb and flow, recent signals, including comments from
the administration regarding the funding for building the
"wall," have reinvigorated concerns that he could endorse
this plan championed by Republicans in the U.S. House of
Representatives. If enacted, the Blueprint proposals would
represent a tectonic shift in the U.S. taxation system by
effectively repealing the income tax and replacing it with a
VAT-like regime referred to as a "destination-based cash flow
tax" (DBCFT). The implementation of a DBCFT would have a
significant impact on Canadian companies, given the level of
economic integration between the Canadian and U.S.
