U.S. House panel to begin hearings on tax
reform next week
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[April 19, 2017]
WASHINGTON (Reuters) - The
tax-writing committee of the U.S. House of Representatives will begin
holding hearings on a Republican tax reform proposal next week, the
panel's chairman said on Tuesday, even as the timeline for overhauling
the tax code slips toward late 2017.
House Ways and Means Committee Chairman Kevin Brady told Fox News he
would soon announce a hearing schedule to examine his House tax reform
blueprint with its proposal to tax imports, a plan that appears to have
lost ground as the White House works to unveil its own approach.
The investment consulting firm Veda Partners advised clients on Tuesday
to expect an April 27 hearing on the import tax proposal known as the
border adjustment tax, or BAT.
Brady's committee could not confirm the date or topic, but he told Fox
News the committee "will soon be announcing congressional hearings on
our blueprint starting next week."
He also acknowledged that the tax reform timeline could slip as House
Republicans try to reach agreement to repeal and replace the Affordable
Care Act, known as Obamacare, following their failed attempt to pass
healthcare legislation in March.
Treasury Secretary Steven Mnuchin said this week that tax reform may not
get done before an August deadline.
"We probably ought not be focused on the month but the year that it
happens, which is this year," Brady said. "If it moves a little past
August and still lands in this year, it's going to be an incredible
achievement."
Much of the debate has focused on the House Republican BAT proposal,
which would impose a 20 percent tax on imports, while exempting exports
from taxation. The proposal is opposed by import-dependent industries
and Republicans who worry it could lead to higher consumer prices.
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Chairman of the House Ways and Means Committee Kevin Brady (R-TX)
speaks about a Republican healthcare amendment during a press
briefing on Capitol Hill in Washington, U.S., April 6, 2017.
REUTERS/Joshua Roberts
Tax experts say the proposal's future depends on whether the White
House backs it. President Donald Trump, who dislikes the term
"border adjustment," said on Tuesday his tax reform plan would
create "a level playing field" for U.S. industry - a phrase widely
viewed as referring to some kind of border tax.
Brady identified the critical elements of legislation as significant
rate reduction, full and immediate expensing for capital investments
and a simplified tax code.
He cautioned against straightforward rate reductions of the kind
that some in Congress have begun to consider.
"A rate cut alone would have worked in the 1980s. It doesn’t in 2017
if we’re going to be competitive," Brady said.
(Reporting by David Morgan; Editing by Chris Reese and Peter Cooney)
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