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July 27, 2017
2017-9011

Tax reform statement released by 'Big Six' negotiators

The "Big Six" group of Administration and congressional negotiators today (July 27, 2017) issued a statement on tax reform that largely affirms previously stated goals for the effort but newly states that the group will not be considering the House border adjustability proposal.

"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," said the joint statement by House Speaker Paul Ryan (R-WI), Senate Majority Leader Mitch McConnell (R-KY), Treasury Secretary Steve Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-UT), and House Ways and Means Committee Chairman Kevin Brady (R-TX).

The group said it has always agreed that "tax relief for American families should be at the heart of our plan," which should also provide "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 statement said the goal is a plan that reduces tax rates as much as possible, allows "unprecedented" capital expensing, places a priority on permanence, and encourages US companies to bring back jobs and profits from overseas.

"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 group said.

The statement said "the time has arrived for the two tax-writing committees to develop and draft legislation that will result in the first comprehensive tax reform in a generation." The group expects the legislation to move through the committees this fall, "under regular order, followed by consideration on the House and Senate floors."

The statement was released as the House is preparing to go out of session for the August recess; the Senate is planning to stay in session longer.

 

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