In a joint statement on tax reform issued yesterday by the U.S. House, Senate, Treasury and the National Economic Council, the parties said that after debating "the pro-growth benefits of border adjustability", they chose to set the policy aside in order to advance tax reform due to "many unknowns associated with it".
Ryan and Brady defended the BAT since its initial proposal, saying it would incentivize US companies not to move factories overseas and instead to export more products.
The battle over healthcare reform has affected the tax reform discussion, Ryan said at another point in the interview with Bartiromo.
For global re/insurers the decision to not include a BAT in the tax reform is welcome news enabling continued fair access to reinsurance and alternative source capital and services within the US market. "If we get rid of those taxes by repealing and replacing Obamacare, which is what our bill at the House passed does, then the revenue baseline to replace the tax code is a trillion dollars lower", Ryan said on Friday. Despite this, Ryan said they would keep their plans intact and reform the rest of the tax code. "Broadening the tax base and lowering the corporate tax rate will allow our industry to compete effectively in the global marketplace, particularly without the additional burden of a border adjustment tax".
Republicans have reached common ground on tax reform, according to House Speaker Paul Ryan, R-Wis.
"While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have made a decision to set this policy aside in order to advance tax reform", the "Big Six" Republican tax negotiators said in a joint statement. I doubt Republicans will go anywhere near that issue for a while. "So, getting consensus between the White House, the Senate and the House, on a way forward on tax reform makes it that much more of a viable enterprise".
"Republicans are dripping tax ideas out like a leaky faucet with no specifics to back them up", Wyden said. "The only thing that could potentially have gotten some Democratic support is some increase in revenue that would pay for something that Democrats want".
The only way to get to three-percent growth is through tax reform, the speaker said. Bonus depreciation could be expanded and some expiring tax provisions could be extended, she said. They estimated that the BAT would raise approximately $1 trillion in revenue over 10 years, which would limit the deficit impact of cutting corporate tax rates.
"There is still a great deal of confidence, even though there is evidence that maybe there shouldn't be so much confidence, given the experience of health care", Robert Willens, president of the tax and consulting firm Robert Willens LLC in NY, said.