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Import tax officially abandoned in tax reform talks

Thu, Jul 27, 2017

Treasury Secretary Steven Mnuchin

White House and congressional leaders officially acknowledged Thursday that a controversial tax on imports would be dropped from tax reform, but otherwise provided no new details on a broader plan they expect to start moving through Congress in the fall.

The import tax, called border adjustability, was pushed by House Speaker Paul Ryan as a way to fund tax cuts, but it prompted a fierce backlash from retailers, other import-dependent industries and conservative activists. With that tax off the table, Congress, the White House and advocacy groups hope to present a more united front on tax reform, though other disagreements will surely flare as lawmakers work on a replacement.

In a statement that was otherwise largely symbolic, the "Big Six" tax reform negotiators vowed to reduce tax rates, simplify the tax code and improve U.S. economic growth by changing tax laws.

The full statement is available from the White House website.