Senator Mitch McConnell Believes Tax Reform Should Be Revenue Neutral
Posted on May 16, 2017
Senator Majority Leader Mitch McConnell stated in an interview that tax reform must be revenue neutral given the current national debt of $21 trillion and due to the lack of support from Democrats which will require Republicans to use budget rules that allow pushing through permanent tax changes with only 50 votes. Read more: McConnell Wants Revenue-Neutral Tax Plan, at Odds With Trump
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Tax Reform by End of Year Still a Goal
Posted on May 14, 2017
House Speaker Paul Ryan cautioned against creating an artificial deadline but still described overhauling the tax code by the end of 2017 as a goal, with the House, Senate, and White House all working together on comprehensive tax reform. Despite previous hesitancy regarding the border adjustment from the Trump Administration, Ryan defended the House Republicans’ proposed border adjustment tax, stating it was necessary since “all of [US] trade competitors…basically border adjust their taxes.” Read more here: Ryan: Planets are aligned’ on tax reform
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Mnuchin Talks Tax Reform at G7 Meeting
Posted on May 13, 2017
U.S. Treasury Secretary Steven Mnuchin discussed tax reform at the G7 meeting in Italy. Mnuchin told reporters that G7 finance ministers are open to, and understand, President Trump’s new trade policies, however the G7 ministers expressed concern that the trend towards less redistributive tax and transfer systems globally may lead to more inequality. Mnuchin responded to concerns that tax reform may widen the income gap by stating that the reductions in the highest tax rates will be offset by reductions in deductions and that the bulk of corporate taxes are passed on to workers. Read more...
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Brady and Roskam Announce Hearing on Tax Reform
Posted on May 12, 2017
Ways and Means Chairman Kevin Brady and Tax Policy Subcommittee Chairman Peter Roskam have announced that the first hearing on tax reform, focusing on policies to benefit economic growth and job creation, will be held on Thursday, May 18 at 10 a.m. Chairman Brady indicated that tax reform legislation could be introduced in June. Hearing on How Tax Reform Will Grow Our Economy and Create Jobs US House Tax Committee Sets First Hearing on Tax Reform
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Trumponomics and Tax Reform
Posted on May 12, 2017
President Donald Trump offered several insights into his tax reform agenda during a recent interview, including his support of increasing the national debt in order to stimulate the economy and imposing a repatriation tax at a 10% rate. President Trump also voiced his appreciation of a value-added tax, admitting, however, that the U.S. is unlikely to ever adopt such a system. Transcript: Interview with Donald Trump
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Pick for Treasury Tax Policy Post Announced
Posted on May 12, 2017
The White House announced that President Trump will nominate David Kautter as the assistant secretary of the Treasury for Tax Policy. Kautter, who has previously served as counsel for former Senator John Danforth on tax legislation, will likely serve as a key player in the coming tax reform process. Read more here: Trump names pick for top tax position at Treasury
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Comey’s Dismissal May Impede Reform
Posted on May 11, 2017
The firing of FBI Director James Comey could weaken President Trump’s bargaining power with Congress and the administration’s ability to push legislation. Possible outcomes may include tax reform delays or a reform package much more similar to the House Republicans’ Blueprint plan rather than the White House agenda. Delay Seen, again, on Trump Growth Agenda after Comey Sacking
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Tax Reform in 2019?
Posted on May 10, 2017
Wall Street analysts are generally in agreement that the House of Representatives’ passage of the American Health Care Act will delay tax reform. Predictions on the tax legislation timeline run the gamut, from the second half of 2017, into early 2018, or even 2019 depending on reform progress as the midterm elections near. Tax Reform Could Be Pushed to 2019 as GOP Focuses on Health Care
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Chairman of Senate Finance Committee States that Trump Administration is Against Border Adjustment Tax
Posted on May 10, 2017
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 will be “tough to pass” and unlikely to even move out of the Senate Finance Committee. Read more: U.S. Senate finance panel unlikely to support import tax: chairman
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House Republicans Divided Over Means to Pay for Tax Reform
Posted on May 10, 2017
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 of Tax Overhaul
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Rep. Brady Declares Border Adjustability Still a Priority After Release of Trump’s Tax Proposal
Posted on May 6, 2017
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 and Europe “all border adjust their tax.” Listen to the full interview here: WND Radio. Very exciting’ – Trump goes ‘bold’ on tax promise
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Congressional Research Service Report on Blueprint
Posted on May 5, 2017
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 report can be found on our Resources tab or at the following link: The “Better Way” House Tax Plan: An Economic Analysis
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Mnuchin Predicts Three Percent Economic Growth
Posted on May 2, 2017
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: Mnuchin sees U.S. growth reaching 3 percent in time, tax cuts to help
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Trump’s Tax Plan Causes Divisions Within the Republican Party
Posted on May 2, 2017
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 deficit in the short term, and therefore would be required to sunset after ten years unless a number of Senate Democrats voted to pass it. Read more at: The Looming Clash Between Trump and Republicans on...
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Border Adjustment Tax Unlikely to be Part of Reform Effort According to Top Senate Republican
Posted on Apr 28, 2017
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 expressed skepticism that its passage would be unlikely. Read more at: Senate’s No. 2 Republican: Border tax ‘probably dead
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