House Republicans’ plans for a major overhaul of the tax code received a major endorsement Tuesday, as prominent anti-tax activist Grover Norquist backed the proposal, including a controversial border adjustment provision.
Speaking on CNBC, the president of Americans for Tax Reform said “the whole package is pro-growth” and should be passed in the next six months.
Norquist was specifically asked about the plan’s border adjustment, a feature that is controversial among importers because it would block them from deducting the cost of imported goods from their taxable income.
The border adjustment is the “most problematic” feature of the reform proposal, the conservative activist responded, because it “seriously disadvantages retailing [and] will raise costs for middle-income people.”
Nevertheless, he supports the tax reform as a whole, border adjustment included, because he says it is a net tax cut and pro-growth.
Republican leaders issued a strong defense of the border adjustment Tuesday morning, saying it was a key part of the package.
Americans for Tax Reform is the group that maintains the taxpayer protection pledge for lawmakers, promising that they will not raise taxes. Most Republicans have signed the pledge.
