Xinhua, Washington :
The White House and Republican leaders said on Thursday that they have set aside the controversial border adjustment tax as they aim to get the tax reform done this year. “While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform,” leaders from the White House, the House and Senate Republicans working on the tax reform said in a joint statement, referring to the border adjustment tax, which will tax imports while exempting exports.
The statement also outlined shared broad principles for the tax reform, including simplifying the tax code, providing tax relief for American families and lowing tax rates for all American businesses. But it didn’t offer new details on possible corporate or income tax rates, or the impact of tax reform on fiscal revenue.
The joint statement came from House Speaker Paul Ryan and Ways and Means Committee Chairman Kevin Brady, Senate Majority Leader Mitch McConnell and Finance Committee Chairman Orrin Hatch, U.S. Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn. These officials, known as the “Big Six”, expected the legislation for tax reform to “move through the committees this fall,” followed by consideration on the House and Senate floors, according to the statement. That’s in line with the administration’s earlier timeline for getting tax reform legislation enacted this year.
The Trump administration in April unveiled the principles of the long-awaited tax reform plan that would significantly cut income taxes for Americans and corporates, but many policy details remain undecided. The “Big Six” has held regular meetings in recent months in a bid to reach an agreement on a tax reform plan, a top priority for Republicans and the Trump administration.
