GOP Lawmakers, White House Outline Tax Plan

GOP Lawmakers, White House Outline Tax Plan

The R Street Institute welcomes today's announcement that congressional leaders will not give active consideration to a border-adjustment tax as part of comprehensive tax reform legislation.

Ryan and other Republican leaders said in a joint statement Thursday, "We appreciate that there are many unknowns associated with it and have chose to set this policy aside in order to advance tax reform".

"For the first time in many years, the American people have elected a president and congress that are fully committed to ensuring that ordinary Americans keep more of their hard-earned money and that our tax policies encourage employers to invest, hire, and grow", federal leaders said in the statement.

A 2017 study by the Center for Automotive Research (CAR) estimates that USA light vehicle sales would immediately fall by 5.6% following implementation of a border adjustment tax, resulting in a $34.6 billion overall cost to US consumers.

"Retailers pay the highest effective corporate tax rate of any sector of the USA economy", Shay said.

The group said have chose to set aside a controversial border adjustment tax on imports that was estimated to raise about a trillion dollars in revenue and had been part of the House GOP's tax blueprint, but was opposed by retailers and other groups. "So, getting consensus between the White House, the Senate and the House, on a way forward on tax reform makes it that much more of a viable enterprise".

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Ryan told FOX Business he is ready to make concessions, particularly dropping plans for a border adjustment tax, which would have given greater tax preferences to American companies that export goods in comparison to firms that import. The discussions largely occurred outside the public eye, but roughly 200 lawmakers were briefed and the administration met with multiple business groups and trade associations on taxes that are largely supportive of the lower rates.

Tax reform is still months away, if not longer.

-Frank Clemente, Americans for Tax FairnessThough Ryan and company claim their vague plan to lower tax rates "as much as possible" will lift workers and small businesses while boosting economic growth, analysts have argued that in reality their agenda would deepen American's inequality crisis, which is the worst in the industrialized world. The joint statement from Senator McConnell and Speaker Ryan shows a strong commitment to certain principles that will drive the tax conversation in the weeks ahead. He also noted that they plan to use "dynamic" revenue estimates that take into account the economic effect of tax changes.

"We believe that we can cut taxes without increasing the deficit", he said.

"There's not a complete consensus on how best to do healthcare reform", he said.