Chairman of Senate Finance Committee States that Trump Administration is Against Border Adjustment Tax
Posted on May 10, 2017 in News
The Chairman of the Senate Finance Committee, Orrin Hatch, believes after meeting with Trump administration officials, that the Trump administration is against the House Republican’s proposed border adjustment tax. Treasury Secretary Steven Mnuchin met with Republican Senate Finance Committee on May 9 to discuss tax reform. Senator Hatch also believes that the border adjustment tax...
House Republicans Divided Over Means to Pay for Tax Reform
Posted on May 10, 2017 in News
House Republican leadership is committed to a tax reform plan that does not add to the deficit, paying for tax cuts with a Border Adjustment Tax and the removal of deductions. Other members of the House majority support lower rates regardless of the immediate effect, arguing that resultant long-term economic growth will outweigh short-term costs. House Republicans Struggle with Cost...
Rep. Brady Declares Border Adjustability Still a Priority After Release of Trump’s Tax Proposal
Posted on May 6, 2017 in News
Representative Kevin Brady stated in an interview with WND/Radio America that despite the Trump administration not mentioning the border adjustment tax in its tax reform proposal released two weeks ago, border adjustability was “still a priority.” The chairman of the House Ways and Means Committee characterized the tax as necessary since American “competitors,” including China, Japan...
Congressional Research Service Report on Blueprint
Posted on May 5, 2017 in News
On April 25, 2017, the Congressional Research Service released a report that examines the potential economic impact of the House Republicans’ Blueprint for tax reform. The report addresses considerations related to economic efficiency and growth, distributional issues, revenue effects, and administrative issues, as well as noting that the proposal is likely to violate WTO rules. The...
Mnuchin Predicts Three Percent Economic Growth
Posted on May 2, 2017 in News
Secretary of the Treasury Steven Mnuchin states that tax reform and regulatory relief will help realize an economic growth rate of three percent within two years. Despite concerns over funding for the Whitehouse tax reform plan, Mnuchin sees several ways to offset lost revenue and is hopeful for bi-partisan support as he continues to work with congressional leadership. Read more at:...
Trump’s Tax Plan Causes Divisions Within the Republican Party
Posted on May 2, 2017 in News
Following a two-day tax policy retreat, Peter Roskam, Chairman of the House Ways and Means Subcommittee on Taxation, indicated that the committee is still committed to writing tax reform legislation that is revenue neutral and therefore can be permanent under the Senate’s budget reconciliation rules. That contrasts with Trump’s tax plan, which is projected to increase the federal...
Border Adjustment Tax Unlikely to be Part of Reform Effort According to Top Senate Republican
Posted on Apr 28, 2017 in News
Senator John Cornyn, the Senate Majority Whip, stated yesterday that the border adjustment tax, proposed by House Republicans, was likely dead. While the Trump administration’s guidelines regarding tax reform advocated for a switch to a territorial system, they did not specifically endorse a border adjustment mechanism. According to Senator Cornyn, enough Republican senators have...
Trump Administration Releases Tax Plan Outline
Posted on Apr 26, 2017 in News
The Trump administration released an outline of their tax reform plan today, which sets out the key initiatives they will pursue. Their proposals include lowering the corporate tax rate to 15%, repealing the 3.8% Affordable Care Act tax, implementing a territorial tax system, and introducing a transition repatriation tax on “trillions of dollars held overseas.” Read more at: Cohn,...
Trump Announces Tax Cut Details Will Be Released Next Week
Posted on Apr 19, 2017 in News
President Trump announced that his tax reform plan will be released next week. He promised a “massive tax cut” to businesses and individuals that could end up larger “than any tax cut ever.” He did not provide any insight into the contents of the plan. Read more at: Trump says he will release tax reform package next week
Former Trump Advisors Urge Piecemeal Approach to Tax Reform
Posted on Apr 19, 2017 in News
Former Trump campaign advisors, Steve Forbes, Larry Kudlow, Arthur B. Laffer, and Stephen Moore, urged the Trump Administration and the Republican Party to not attempt to overhaul the entire tax code in one bill. Instead, they advocated first seeking to lower business rates, allow immediate expensing, impose a repatriation tax on overseas profits, and fund infrastructure projects. They...
Ways and Means to Hold Tax Reform Hearings
Posted on Apr 18, 2017 in News
The House Ways and Means Committee will conduct hearings on tax reform in the coming weeks, working toward the goal of passing tax reform by the end of the year. Rep. Peter Roskam (R-Ill.), Chairman of the Tax Policy Subcommittee, will select witnesses and draft the hearing topics, which will focus on elements of the House Republicans’ tax blueprint. Read more at: GOP chairman: Ways...
Tax Reform Timeline in Doubt; Unlikely by August Says Sec. Mnuchin
Posted on Apr 17, 2017 in News
The Trump administration had previously stated that they wished to pass tax reform legislation by August of this year. However, Treasury Secretary Mnuchin has recently stated that the August deadline is too aggressive at this point and is not realistic. With legislative focus turning back to healthcare, it is unclear whether tax reform will be accomplished this year. Read more at: Tax...
Border Adjustment Tax May Affect Discount Retailers’ Profit Margins
Posted on Apr 17, 2017 in News
Dollar Tree, and similar discount retailers, rely on imports from countries like China that manufacture inexpensive products and sell at low prices. If the House Republicans impose the border adjustment tax, and imports are taxed at 20 percent, such discount retailers may have to revise their business models in order to maintain their profit margins and continue to be profitable. Read...
The Fading Blueprint
Posted on Apr 12, 2017 in News
U.S. House Speaker Paul Ryan’s tax reform blueprint is facing opposition within the Republican ranks. Both the Whitehouse and the Senate Republicans are preparing alternative plans, with the latter dusting off former House Ways and Means Committee Chairman Dave Camp’s proposed tax reform act as its foundation for new legislation. Read more at: U.S. Tax Reform Debate Moves Away From...