The “Big Six” group of Trump Administration officials and congressional negotiators released a statement Thursday on tax reform, saying they will abandon the House’s proposed border adjustability and proceed with reforms centered on “tax relief for American families.”
“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” the joint statement said. The statement was issued by House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnel (R-KY), Treasury Secretary Steve Mnuchin, Senate Finance Committee Chairman Orrin Hatch (R-UT), House Ways and Means Committee Chairman Kevin Brady (R-TX) and National Economic Council Director Gary Cohn.
The group called for the tax writing committees to draft legislation that will “result in the first comprehensive tax reform in a generation.”
In their statement, the law and policymakers said tax reform should include “a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones.”
The goals of the tax reforms, according to the statement, are to cut tax rates as much as possible, motivate U.S. companies to transition profits and workers back from overseas, prioritize permanence, and open capital expensing to unprecedented levels.
“And we are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies and workers, while protecting American jobs and the U.S. tax base,” the statement said.
While the Senate plans to stay in session, the House is preparing for August recess. The group anticipates legislation moving through the committees this fall and then to the House and Senate floors soon after.
Caroprese & Company is available to discuss the impact of tax reform which could significantly affect your business and personal income taxes. For more information and to prepare ahead, contact a Caroprese tax expert.