made in national systems of taxation to accommodate com-
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petitive situations.
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a
Also, in a recent Commerce report there was
recommendation that we take a look at the border tax area
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to see whether or not the United States should not adopt
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one in connection with the trade area.
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Can you tell me what the situation is now as
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regards the thinking on how the United States should approach
this problem?
SECRETARY STANS: I don't think I could give you
a final answer on that because it is still being studied and
we don't have all the facts yet to know precisely what the
trade impact of the border tax is likely to be.
As you know, many of the European countries are
* shifting from the so-called cascade type of taxes to value
added taxes and their rates vary a great deal from country
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to country.
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The Common Market countries are now proceeding
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under a plan whereby they hope to harmonize all of these
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various taxes into a single rate of taxation which would
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be applicable in all the countries and which would then form
the border tax rate that would be imposed.
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Now, this has a dual affect. It is a tax which
would apply to any imports in Europe, American exports to
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Europe would be subject to the border tax rate and while at