GOP lawmakers, Trump administration unite on tax reform, 'set aside' border adjustment

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However, they said they remain committed to reforming the tax regime, including reducing corporate and personal tax rates.

Republican leaders said on Thursday that the proposed border-adjusted tax won't be part of negotiations on how to overhaul the USA tax code - delivering a victory to retailers' groups that had strenuously opposed the measure.

In statement put out Thursday by Republican leaders, including House Speaker Paul Ryan, and members of the Trump administration, Republicans said they have shelved the so-called border-adjustment tax, which would tax imports to the United States from certain countries.

"Given our shared sense of objective, the time has arrived for the two tax-writing committees to develop and draft legislation that will result in the first comprehensive tax reform in a generation.Our expectation is for this legislation to move through the committees this fall, under regular order, followed by consideration on the House and Senate floors". President Donald Trump and Congress already are attempting to undo the 2010 health insurance law signed by then-President Barack Obama, finalize a budget and increase the government's borrowing authority. During our meetings, the Chairmen of those committees have brought to the table the views and priorities of their committee members.

Speaking to reporters after the joint statement's release, Brady said tax writers are exploring a "viable alternative" to border adjustment.

Supporters of the tax, led by House Speaker Paul Ryan (R-Wis.) and Ways and Means Committee Chairman Kevin Brady (R-Texas), argued that implementing border adjustability would have advantaged USA manufacturers - but they faced resistance from conservative groups and the retail industry, which lobbied against the proposal because of worries about new import taxes.

The statement Thursday set a goal for formulating a plan that "places a priority on permanence" - a signal that the group still wants a tax bill that balances new revenue against its tax-rate cuts. Ron Wyden, criticized the announcement's vagueness of the announcement. The proposal would chop the corporate tax rate to 15 percent from 35 percent. Under the congressional budget rules that GOP leaders plan to use to pass the legislation with a simple majority in the Senate, any tax changes that would add to the long-term deficit would have to be only temporary.

White House spokeswoman Natalie Strom said most of the goals in the White House April guidelines are "consistent" with Thursday's joint statement.

The statement offered little insight into how the overhaul would avoid increasing the deficit after a decade - now a requirement for the Senate to pass a tax overhaul with less than 60 votes, a likelihood given the Republicans' 52-seat majority.

The omission "may be a concession to the notion that there's now less revenue available for that", said Gerson.

"I doubt that it will have the specificity that will give us a clear understanding of what we are doing", Meadows said.

Most economists say growth at that faster pace is unlikely given the aging US population and low level of productivity gains in recent years.

Matthew Shay, CEO of the National Retail Federation, said Thursday his organization was "very troubled" by the tax proposal, and the danger it posed a multitude of industries had helped scuttle it.

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