President Donald J. Trump of the United States find it hard to trust anyone and with good reason. He had accused the Freedom Caucus, a group of ultra-conservative lawmakers, for the defeat of repeal of the 2010 era Affordable Care Act. The bill was a key achievement of former President Barack Obama. If Trump had his way, the ACA would have been replaced by a new Trump administration crafted healthcare bill.
Reforming the tax system
The US President is ready to move on. He has started to overhaul the tax code of the United States. Freedom Caucus affiliated lawmakers said that they will be happy to set aside the tensions and hard feelings about the healthcare debacle. These lawmakers want a common ground related to tax reform. However, no consensus exists within this ultra-conservative faction, on the details of tax-reform bill. Many members remain open to discussing a number of ideas like border tax reform. Many House Leaders support the latter and many oppose it.
Warren Davidson, Ohio GOP Representative, and a member of the Freedom Caucus, said that Republicans must not engage in blame games. They should work through the differences in policy prior to launching the rax reform legislation. David Schweikert, another Freedom Caucus member, and a GOP Representative from Arizona, may well emerge as a mediator between the House Leaders and conservative faction. Schweikert sits on the House of Representative Ways and Means Committee. The Arizona lawmaker said that he wants to offer companies a number of incentives to invest in equipment and plants. He said that his intention is to maximize the US economic growth.
House Republican leaders have created a blue print for tax reform. It is 35 pages long and named “Better Way”. This document will serve as beginning point for tax-reform discussions. This plan asks income tax system to be streamlined. The rate of corporate income tax is also recommended to be cut from the present 35 percent to 20 percent. This figure excludes export revenues gathered from taxable income. Imports would be subjected to a rate of 20 percent tax. It is to be noted that the proposal on border tax has led to a division in the business community. It is a top point of contention for lawmakers. The industry is also divided. General Electric and other big exporters say that it will give a fillip to jobs and manufacturing. However, retailers say that the border tax will have a negative impact on the economy and on consumer prices in particular.