Congress Seen As Not Likely To Pass Tax Overhaul Quickly
- Author: Zachary Reyes Apr 06, 2017,
Apr 06, 2017, 10:26
"The president's team is hearing input from experts on all sides of the tax reform debate as we formulate what will ultimately be the president's plan to enact the first significant tax reform since 1986".
This is the second time the administration has played down the chances of a carbon tax.
When asked which of the proposals in the current House Republican tax plan would have the greatest anticipated impact on their business, 41% cited the new reduced corporate tax rate structure.
"That's why business leaders need to stay engaged, consider how the House GOP Blueprint may affect them, and be ready to respond quickly as tax reform advances through the legislative process".
Republican elders including former secretary of state James Baker and treasury secretary Hank Paulson in February proposed to the President that he adopt a carbon tax to raise revenue efficiently and address global warming.
He called a potentially revised plan a "border equalization tax", without going into much detail about what would change.
House Ways and Means Committee Chairman Rep. Kevin Brady signaled Tuesday that a proposal with value-added or carbon taxes would face resistance in Congress. CLC says the tax could replace federal regulations and the revenues could be given back to Americans in the form of "dividends". Naturally, the imposition of carbon tax will compel energy companies to shift to solar more rapidly.
Only 16% of more than 1,000 respondents polled during a recent webcast expect tax reform to be achieved this year.
The White House has shot down such speculation, but some administration officials seem intent on telling media outlets a carbon tax is still being considered.
Mr Trump claimed during the election campaign that climate change was a hoax dreamt up by the Chinese, while Republican climate-change sceptics in Congress have long opposed taxing carbon pollution.
Analysis by the International Monetary Fund, OECD and Australia's tax system review by former treasury secretary Ken Henry suggest that the economy would grow faster if business income was taxed less and consumption taxed more.
Trump signed an executive order in late March rescinding the Obama administration's "social cost of carbon" estimate.
Mr Trump's trade adviser Peter Navarro also dislikes how VATs imposed by other countries exempt their exports and tax goods imported from the US.