House Speaker Paul Ryan and Ways and Means Chairman Kevin Brady have told Republicans that the controversial border-adjusted tax on imports is no long
House Speaker Paul Ryan and Ways and Means Chairman Kevin Brady have told Republicans that the controversial border-adjusted tax on imports is no longer part of tax-legislation negotiations, according to four people familiar with the ongoing discussions.
It’s unclear if a statement coming Thursday from the so-called Big Six — which includes Ryan, Brady, White House economic adviser Gary Cohn, Treasury Secretary Steven Mnuchin, Senate Majority Leader Mitch McConnell and Senate Finance Committee Chairman Orrin Hatch — will specify the elimination of the border-adjusted tax or not.
The border-adjusted tax, which would replace the current 35 percent corporate rate with a 20 percent levy on companies’ domestic sales and imported goods, had been a centerpiece of the House GOP tax plan endorsed by Brady and Ryan. It was estimated to generate more than $1 trillion over a decade, which would help pay for tax cuts promised by Republicans.
The concept had been under attack by retailers and other industries that rely on imported goods, who mounted a campaign saying it would raise prices for working Americans on everyday goods.
Ryan’s office didn’t immediately respond to a request for comment.