On July 27, a proposed controversial border-adjusted tax proposal was denied in the House of Representatives. In a released statement, the officials informed that the goal of a tax reform is to reduce tax rates “as much as possible,” but the details yet remain unclear.
The refusal of the border tax brought relief to retailers and importers whose profits faced threats under the plan. "While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform," the group of six Republican negotiators working on tax reform said in a joint statement.
The statement said there now exists a “shared vision for tax reform,” noting that the aim would be to “protect American jobs and make taxes simpler, fairer and lower for hard-working American families.” The statement informed the aim is to reduce tax rates “as much as possible.” However, following the joint statement of tax-reform principles it still appears unclear what will be the tax plan and what tax cuts the US multinationals can expect.
The Financial Times have reported that Donald Trump wants to push forward with a policy agenda in the wake of failures such as the repeal of Obamacare. He suggested to Republicans in the past few days that they need to remain focused on healthcare. However, the Senate and House is focusing on the tax reform as the members seek a legislative victory before the 2018 midterm elections.
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