Republicans’ tax plan could morph from a much-anticipated plan to overhaul the U.S. tax code into just another law that cuts taxes. GOP lawmakers cannot agree on a proposed tax on imports that would help lower the corporate tax rate.
A Controversial Tax
The tax on imports would bring $1 trillion over the next ten years and offset the lower rates without widening the deficit. The tax would also encourage companies to keep operations in the U.S. and maybe convince other companies to ship jobs back home.
However, the import tax is naturally not wanted by the oil industry, retailers, and car manufacturers. So, more and more lawmakers are rallying against it. The congressmen are concerned that the tax would result in higher prices for the end consumer.
Majority Leader Mitch McConnell acknowledged that, without everyone being on the same page when it comes to the controversial tax, there probably aren’t enough votes to pass the tax plan in the Senate. GOP Senators have yet to endorse the import tax, while House leaders believe it is best just to drop it.
GOP Looking for Consensus
The chair of the Freedom Caucus Rep. Mark Meadows thinks that a plan that can lead to a consensus is the best course of action. Even Rep. Kevin Brady, who has pushed for the import tax since the beginning, said the negotiations are ongoing and he is open to new ideas. Brady still thinks the tax can boost economic growth and the number of U.S. jobs.
I’m still confident that we’re going to stay at the table until we solve that problem, which is how do we stop U.S. jobs from continuing to leave the United States,
The lawmaker told reporters.
Last week, Brady proposed phasing the import tax over the next five years to allow companies to adjust. Opponents of the tax weren’t pleased. The Retail Industry Leaders Association (RILA) underlined that the tax would still force consumers to pay more for companies to remain profitable.