House Freedom Caucus Chairman Mark Meadows suggested Thursday that he is not interested in a potential compromise offered by leadership on the border-adjusted tax proposal that has proved the most controversial aspect of the leadership’s tax reform plan.
Ways and Means Committee Chairman Kevin Brady this week suggested that the idea of a five-year phase-in for the border adjustment tax could be a way of allaying the fears of retailers and other importers worried about a tax hit.
Yet the retail lobby and other opponents who have mounted an aggressive campaign against border adjustment rejected the compromise, and Meadows did the same Thursday.
“I think the border adjustment tax, whether you phase it in or you put it in all at the same time, is D.O.A.,” the North Carolina said just off the House floor.
“There’s just not the votes there,” Meadows continued. “I’m not saying that the merits of the border adjustment tax is a bad thing, it’s just the political reality is there are not the votes there for the border adjustment tax whether it’s today, tomorrow, or in five years.”
Last week, members of the Freedom Caucus called on leadership to drop the border adjustment provision in order to move ahead with tax reform.
The provision would raise on the order of $1 trillion over 10 years that could be used to finance tax rate reductions. Freedom Caucus members have suggested making up the difference through welfare reform.
