-Source-The Hill-
The Republican effort to overhaul the nation's tax code was stuck. House Republican leaders, most notably Speaker Paul Ryan (Wis.), were pushing for a controversial provision called “border adjustment” that would tax imports and exempt exports. Many House Republicans were skeptical of the plan while GOP members in the Senate said it was dead on arrival if it ever got to the upper chamber.
In April 2017, President Trump huddled with his senior advisers on strategy. The White House was poised to release its own plan and the president's team was debating whether they should hit the brakes. The one-page blueprint notably didn’t include border adjustment and there was some discussion of postponing release of the White House proposal.
“No, we're moving forward,” Trump said, according to a senior White House official. “It's time to move forward.”
The White House's action was the beginning of the end for the border adjustment idea, which attracted intense criticism from retailers and influential GOP donors Charles and David Koch. Trump’s plan “broke the gridlock” on border adjustment, the senior White House aide said. House Majority Leader Kevin McCarthy (R-Calif.) said he didn’t think the proposal would ever get off the ground.
“Paul [Ryan] was always for that, but I never felt that had the votes to pass,” McCarthy told The Hill.
Gary Cohn, who was Trump's top economic adviser, said, “We knew talking to Senate leadership there were virtually no votes in the Senate for a border-adjusted tax.” Over the past several months, The Hill has interviewed dozens of Trump administration officials, lawmakers, aides and stakeholders to report the behind-the-scenes stories of the most sweeping changes to the tax codes in decades. The tax cuts are both Trump’s biggest legislative achievement to date and the most important bill passed during the retiring Ryan’s Speakership. Republicans promised they would further unshackle a growing economy, and they have been rewarded with economic growth of 4.2 percent in the second quarter of this year. Read more
Comments