House Republicans’ top tax writer is set to meet Wednesday with a group of CEOs amid a tax reform push that he insists is moving ahead at top speed despite Congress’ focus on replacing Obamacare.
Rep. Kevin Brady, the chairman of the House Ways and Means Committee tasked with writing tax reform legislation, will meet Wednesday with the Business Roundtable, a lobbying group made up of CEOs from hundreds of big companies.
The group said Tuesday that tax reform was the top agenda item for their members. Nevertheless, the Business Roundtable has not weighed in on the House Republican tax plan, nor the part of it that has divided businesses, an import tax or border adjustment.
Brady, who is also in the middle of a major effort to move legislation to replace Obamacare, said Tuesday at the Capitol that Republicans “are moving full steam ahead on tax reform,” and that the effort is proceeding on a “parallel track” with healthcare legislation.
Members of his committee tasked with writing the tax reform legislation “are moving at 100 miles per hour,” the Texas Republican said, downplaying concerns from some conservative onlookers that tax reform hasn’t moved fast enough. “There is an awful lot of momentum for tax reform.”
In recent weeks, talk about tax reform has been dominated by concerns from retailers and other import-heavy industries about the import tax, which would be part of a broader corporate rate-cutting reform that would tax goods based on where they are sold. In the plan, companies no longer would be allowed to deduct the cost of imported goods and services, but also would not pay any taxes on revenues from exports. In today’s system, U.S. companies are taxed on all profits, whether they are earned in the U.S. or abroad.
But the fight over the import tax provision is just one of many such battles that would have to be fought to get tax reform to the finish line. Brady indicated that he is prepared for those lobbying efforts against specific provisions.
“It’s natural,” he said. “It’s normal.”
