Healthcare Reform Strikes Out; Tax Reform Next up to BAT

Mar 27th, 2017

"Mr. Brady’s tax-writing committee is expected to convene a meeting about an overhaul on Tuesday.

'We have so much in common with the Trump administration, it wouldn’t make sense to have a separate tax bill from Secretary Mnuchin, a separate one from Gary Cohn, a third from whomever,' Mr. Brady said on Fox News, referring to the Treasury secretary, Steven T. Mnuchin, and to one of Mr. Trump’s top economic advisers. 'Why not take the basis of the House plan?'

Changing the tax code affects every person and industry. Lobbyists are already hoping to shape tax legislation. As plans become more concrete, business groups will be ready to pick them apart.

Mr. Trump has at times expressed admiration for some form of border tax as a way to give an advantage to American producers. However, facing a backlash from retailers, energy companies and conservative think tanks that warn that consumer prices will soar under the House Republican plan, Mr. Trump and Mr. Mnuchin have sounded cool to the idea.

Many Senate Republicans are also skeptical, raising the prospect that Mr. Ryan’s tax vision could suffer the same fate as his health plan, toppling under the weight of divisions within his party.

If Mr. Trump does try to go his own way, he could propose a tax cut plan that disregards deficits and assumes that robust economic growth will make up for lost revenue."