05 June 2017 EY Center for Tax Policy: This Week in Tax Reform for June 2 Finance nomination hearing: On Wednesday, June 7 (at 10 a.m.), the Senate Finance Committee will hold a nomination hearing for: Eric D. Hargan to be Deputy Secretary of Health and Human Services; David Malpass to be an Under Secretary of the Treasury; and Brent James McIntosh General Counsel for the Department of the Treasury. Cohn says plan out by end of summer: Providing the most specific comments yet about when the Administration would release additional details on its tax reform plan, National Economic Council Director Gary Cohn said June 2, "We will have a very detailed drafted tax plan to be delivered to Congress by when they get back from the August recess," and indicated the plan will reflect ongoing negotiations with key congressional Republicans. In a Fox Business News interview, Cohn further said the Administration will "expect the Congress to act on that tax plan" in 2017. In outlining the tax plan April 26 — including calling for a 15% business tax rate and a territorial tax system — the White House said it would work with Congress to develop the details. Cohn said that effort continues. "We are still having very constructive meetings with Congress," he said. "So there's the group of leaders at the Senate and the House and the White House that are meeting regularly to hammer out a tax plan." Asked about the possibility of a slimmed-down plan with a corporate tax rate cut as the centerpiece, Cohn said they would consider everything but, "We are really driven to do the big reform and cut. Reform is still part of our agenda." He did cite the need to cut the business tax rate to attract businesses back to the United States and to stimulate job creation. However, "it's not as simple as just cutting the corporate tax rate because you have to deal with the pass-throughs that sit between the personal tax rate and the business tax rate," Cohn said. He said the Administration intends to pay for tax cuts by broadening the base and by creating economic growth and stimulating the economy through lowering corporate tax rates. In a Bloomberg interview, Cohn continued to say the Administration is actively engaged with Congress to develop a consensus plan so that there is "uniform buy-in" when it is released. Trump says tax bill 'moving along:' President Trump, returning from a nine-day foreign trip, expressed some frustration with the legislative process but said his tax plan is moving along well. In a May 30 tweet, President Trump said, "The U.S. Senate should switch to 51 votes, immediately, and get Healthcare and TAX CUTS approved, fast and easy. Dems would do it, no doubt!" Health care legislation to repeal and replace much of the Affordable Care Act is being considered under the budget reconciliation process that requires only 51 votes in the Senate, and Republican leaders are planning to use the same process for tax reform legislation. However, reconciliation rules do impose constraints. In announcing US withdrawal from the Paris Climate Accord June 1, President Trump said: "Our tax bill is moving along in Congress and I believe it's doing very well. I think a lot of people will be very pleasantly surprised. The Republicans are working very, very hard. We'd love to have support from the Democrats, but we may have to go it alone, but it's going very well." Senator Lee says border adjustability dead: Congress was out of session for the Memorial Day recess this week but criticism of the border adjustability proposal continued. Senator Mike Lee (R-UT) said on Fox & Friends May 31, "The White House doesn't want it. A number of us in the Senate have real concerns with the border adjustment tax." Lee said he believes that part of the issue is "dead," but that tax reform can still happen. "My job as President is to do everything within my power to give America a level playing field and to create the economic, regulatory and tax structures that make America the most prosperous and productive country on Earth, and with the highest standard of living and the highest standard of environmental protection." — President Trump, June 1
Document ID: 2017-0894 | |||||
