The Tax Conundrum
Whatever happened to tax reform?
A complete tax overhaul will likely miss the August deadline set by Treasury Secretary Mnuchin. The White House is trying to learn from the failure of enacting a new health care law to replace ObamaCare and take a more active role in getting legislation passed.Well we can't have that, can we? But the idea of reform always seems easier than actually getting it done...
White House aides told The Associated Press Monday that the goal is to cut tax rates sharply enough to improve the economic picture in rural and industrial areas of the U.S. However, the administration so far has swatted down alternative ways for raising revenues, such as a carbon tax, to offset lower rates.
Trump has not said which trade-offs he might accept and had remained noncommittal on the leading blueprint for reform from Rep. Kevin Brady, R-Texas, the chairman of the Ways and Means Committee.
Brady has proposed a border adjustment system, which would eliminate corporate deductions on imports, to raise $1 trillion over 10 years that could fund lower corporate tax rates.
But that possibility has rankled retailers who say it would lead to higher prices and threaten millions of jobs, while some lawmakers have worried that the system would violate World Trade Organization rules.