The hot new term in the world of tax reform is “border adjustability,” which refers to when governments have systems that tax imports and exempt exports.
This approach is widely associated with European-style credit-invoice, value-added taxes (VATs), and Republicans appear poised to bring something similar to our shores.
As part of their “Better Way” tax plan, House Republicans are proposing to change the corporate income tax into a destination-based, cash-flow tax (DBCFT), which in itself is a kind of border-adjustable tax.

A destination-based tax is levied based on where a good winds up, rather than its origin. Under a corporate border-adjustment tax (BAT), revenues made overseas by domestic companies would not be added to taxable income.