GOP Tax Plan Retreats Even Further into the Future

Republican leaders in the House are beginning to roll out their plan for tax reform, with further details to come on September 25, and a budget containing tax language to be completed by mid-October, Politico reports. That framework would only be viewed “as guidance or potential signposts for drafting legislation”, Hatch said, according to a transcript of his testimony.

The U.S. Senate’s top Republican on tax policy warned on Thursday that the “Big Six” tax negotiators would not dictate the direction of expected tax reform legislation to his committee. The group jointly released a two-page statement in July that outlined a broad set of agreed-upon tax principles.

“If we can get it down to 20, 22, 23 percent, I’d feel pretty good about it”, the Utah Republican said. “I think you’ll see where we are going on the individual rates and in the redesign of our tax code so that it will be more competitive globally, which is another major imperative for us”.

“The group – some have deemed us the Big Six – will not dictate the direction we take in this committee”, he said.

The Trump administration has pushed Congress in recent weeks to release a framework this month, to be followed quickly with the release of actual legislation.

Overhauling the US tax code is a top priority of President Donald Trump and congressional Republicans, but they have made little progress since taking power in Washington in January via a closed-door process that has excluded Democrats.

“There’s a lot of frustration with the Senate”, he said.

Rep. Dave Brat, R-Va., was among those who said he is not willing to vote for a budget that could lead to another failure, this time on tax reform.

The White House didn’t immediately respond to a request for comment.

After the morning House GOP meeting, Brady said that GOP leaders are working with Trump and the White House on the tax bill. The plan is to grandfather existing debt and provide exemptions to small businesses and agriculture, he said.

“The House will begin with the bill and we will continue to have work to do after the framework is laid out”, Brady told reporters.

Back in February, Treasury Secretary Steven Mnuchin said he expected “very significant” tax reform to be passed before Congress’s August recess.

Ways and Means Republicans are scheduled to meet at a retreat September 24-25 to discuss the tax bill before a framework is released.

Brady also reminded members that House and Senate budget writers will need to reach an agreement in mid-October on budget levels for 2018 to ease the path to passing an eventual tax bill.

Many conservatives, however, have been unwilling to sign off on a budget until they see the full details of the tax proposal.

Hatch’s remarks appeared to signal a parting of ways from the unified approach the White House, Senate and House have been pursuing for months. “There’s a reason there is a local and state tax deduction”. Opponents of the budget plan say they went along with GOP leaders’ pleas this year that they had to pass a bare-bones budget to pave the way for repealing and replacing the Affordable Care Act. Some Republican lawmakers have been discussing the idea as a revenue raiser for a tax bill.

Another area of concern is “Rothification”, which would tax retirement savings upfront instead of when they are withdrawn.

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