Congressional GOPs trying to achieve a semblance of speed to overhaul the US tax code prior to August recess could expect to share the results of many months of deliberations during the fourth week of July. The 'big six' of the Republican team- Paul Ryan, the House Speaker and elected from Wisconsin, Kevin Brady from Texas and the Chairman of House Ways and Means Committee, Mitch McConnell, the Senate majority leader elected from Kentucky, Orrin G. Hatch, the chairman of the Senate Finance Committee from Utah, Gary D. Cohn, Director of National Economic Council, and Steven Mnuchin holding the post of Treasury Secretary, held a closed-door meeting on July 26. The meeting was closely watched by tax lobbyists.
There were intense talks between the Treasury Department, House, White House, and the Senate. The GOP leaders are trying their hardest to develop a unified plan which they could introduce in September. The tax lobbyists will take note of individual tax rates along with the corporate tax rates. There will also be a taxation of the small businesses, the interest expenses deductibility along with the contentious proposal of border adjustment tax. The latter would tax the importation of goods, exports will not be taxed.
The common principles could be announced on July 28. It is expected that the announcement will not shed much light on multiple contentious issues. These issues have weighed down a number of congressional leaders. The economic team of the White House was also affected as the two entities tried to bridge the differences. The release will be a signal of important progress. This is needed as President Donald J. Trump has made it the top legislative priority.
There is a possibility that the Trump administration will make the announcement of abandoning or marked scaling back of border tax concept. This news has resulted in a backlash from the energy companies and retailers from the time it was released last summer. Many House GOPs have also expressed their reservations on this issue. Business groups are prowling the corridors of power in Washington trying to wrest their prized deductions. They are also trying to influence the lawmakers so that the latter comes around to support their economic views. Even with all these efforts being put in, the Republican Party will likely encounter a number of procedural obstacles. The GOP must put in efforts to repeal Affordable Care Act or Obamacare. A budget resolution is also needed.