Politics White House, Congress Republicans nearing key tax overhaul decisions

22:20  09 june  2017
22:20  09 june  2017 Source:   Reuters

Americans are taking their sweet time paying taxes, and the government is running out of cash

  Americans are taking their sweet time paying taxes, and the government is running out of cash The debt ceiling is crashing down on federal finances as taxpayers wait to see whether President Trump can deliver the tax cuts he promised.Federal data and anecdotes from tax advisers reveal that a significant number of taxpayers are postponing cashing out on investments and other financial decisions, hoping to pay less later if the White House and congressional Republicans pass a huge reduction in tax rates.

After their humiliating loss on health care, Republicans in Congress could use a quick victory on a big issue. It won’t be an overhaul of the tax code. And the White House is sending contradicting signals on the new tax , adding to the uncertainty. House Republicans also can't decide whether to move on

Republican divide. House and Senate Republicans largely agree on the broad outlines of a tax overhaul . A former Treasury official under President Barack Obama says the White House needs to stake out clear goals on tax overhaul to guide the debate in Congress .

President Donald Trump gestures at the Infrastructure Summit© REUTERS/Yuri Gripas President Donald Trump gestures at the Infrastructure Summit

The Trump administration and top Republicans in U.S. Congress are within a few weeks of agreeing on central aspects of a tax overhaul plan that will determine the contours of legislation now expected in September, an administration official told Reuters this week.

Under pressure from business groups and rank-and-file Republicans, Trump officials and congressional leaders still need to decide how much to slash tax rates and if the package should increase the federal budget deficit, administration and congressional sources said.

Republicans Return From Recess Under Health Care Time Crunch

  Republicans Return From Recess Under Health Care Time Crunch Republican senators return on Monday from a 10-day recess with immediate decisions to make on their quest to overhaul the 2010 health care law.While Senate leaders have largely avoided putting any artificial timelines on their endeavor, the GOP is under an extreme time crunch to produce and advance their own legislation to match the House bill that narrowly passed the chamber last month.

And the White House is sending contradicting signals on the new tax , adding to the uncertainty. House and Senate Republicans largely agree on the broad outlines of a tax overhaul . But they are sharply divided on a key tenet of the House Republican plan.

And the White House is sending contradicting signals on the new tax , adding to the uncertainty. House and Senate Republicans largely agree on the broad outlines of a tax overhaul . But they are sharply divided on a key tenet of the House Republican plan.

The future of a border adjustment tax, or BAT, proposal from House of Representatives Republicans, meant to boost exports and discourage imports, could also be decided within the next two to three weeks, the administration official said.

President Donald Trump has pledged to make a tax overhaul a priority. But after 20 weeks in power and numerous distractions, he has yet to offer a tax bill to Congress. Expectations for legislation have slipped repeatedly, from spring to summer and now after the U.S. Labor Day holiday.

Still, stocks are up since Trump's November election win and companies and wealthy Americans are positioning themselves to realize more income in 2018, betting lower taxes are coming.

The head of the House Freedom Caucus, a bloc of three-dozen conservatives capable of stalling legislation, on Friday called on Republicans to acknowledge a lack of consensus on the BAT and produce a tax proposal by the end of July.

Trump predicts ObamaCare overhaul by summer, historic tax cut

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Some key Republican senators want to share the political risk with Democrats. They argue that a tax overhaul must be bipartisan to be fully embraced by the public. Earlier in the day president-elect Trump met with U.S. President Barack Obama at the White House .)

Congress seen as not likely to pass tax overhaul quickly. House Republicans also can't decide whether to move on from health care. House GOP leaders say the tax is key to lowering the top corporate income tax rate from 35 percent to 20 percent.

Trump and fellow Republicans pledged in the election campaign last year to tackle in 2017 the biggest tax overhaul since the Reagan era. But that agenda has been slowed by infighting over dismantling Obamacare and probes of possible ties between Trump's campaign and alleged Russian meddling in the 2016 election.

The Business Roundtable, a powerful lobbying group that represents chief executives, wrote to Trump and congressional leaders this week calling for a "shift from listening to action" on tax reform.

BROAD AGREEMENT

The administration official, who asked not to be named, said there is broad agreement among participants in the talks on the need to cut taxes, simplify the code, eliminate tax breaks, end taxation of U.S. corporate overseas profits and repatriate an estimated $2.6 trillion in corporate profits held overseas.

But key details remain open to question.

Republicans are taking a big political risk on health care

  Republicans are taking a big political risk on health care <p>After seven years attacking former President Barack Obama's health care law, Republicans are finally in control of the entire government and say they have to deliver now.</p>They're trying to scale back major benefit programs being used by millions of people. And they're trying to do it even though much of the public is leery of drastic changes, and there's no support outside the GOP.

And the White House is sending contradicting signals on the new tax , adding to the uncertainty. House and Senate Republicans largely agree on the broad outlines of a tax overhaul . But they are sharply divided on a key tenet of the House Republican plan.

House Republicans also can't decide whether to move on from health care. A former Treasury official under President Barack Obama says the White House needs to stake out clear goals on tax overhaul to guide the debate in Congress .

More meetings are expected among U.S. Treasury Secretary Steven Mnuchin, White House economic adviser Gary Cohn, Senate Republican Leader Mitch McConnell, House Speaker Paul Ryan, House Ways and Means Committee Chairman Kevin Brady and Senate Finance Committee Chairman Orrin Hatch and their staff, the official said.

After their third meeting on Tuesday, officials had not decided whether to adopt full expensing for corporations, the administration official said. The policy would allow companies to write off the cost of capital investments such as equipment immediately and plow the money back into their businesses.

The official said the aim of the talks is to agree on a framework by mid-year and release legislation soon after lawmakers' long August recess.

A key decision awaits the House Republicans' export-boosting BAT, intended to help pay for reforms while dissuading companies from moving assets, profits and jobs abroad.

The BAT, which would tax imports but exempt export revenues from taxation, has run afoul of many Republicans and drawn criticism from the administration. Officials in Congress and the administration are examining options to the BAT that could reduce erosion of the federal tax base, including rules and a minimum corporate tax.

Decisions on BAT, revenue neutrality and expensing will help decide if Congress can cut the corporate income tax to 15 percent, as Trump seeks, or 20-25 percent as envisioned by the House Republicans' tax plan.

(Reporting by David Morgan; Editing by Kevin Drawbaugh and Meredith Mazzilli)

Republicans debating remedies for corporate tax avoidance .
<p>President Donald Trump and Republican leaders in Congress will soon confront a complex challenge for tax reform.</p>Lawmakers say the current tax code incentivizes profit shifting overseas because of the high 35 percent U.S. corporate income tax rate and rules that allow companies to hold profits abroad tax free until returned to U.S. soil.

Source: http://us.pressfrom.com/news/politics/-57226-white-house-congress-republicans-nearing-key-tax-overhaul-decisions/

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