He will acknowledge that the debate over a “border adjustment” tax on imports — which was the centerpiece of the House plan, and which the White House and many House and Senate Republicans oppose — still needs to be settled. However, he will argue that the country must switch to a territorial system, which would tax all businesses solely on the goods and services they sold in the United States.
“We must think differently so that, once again, we make things here and export them around the world,” Mr. Ryan will say.
He will also make the case for permanent changes to the tax system, rather than just temporary tax cuts.
Because Republicans are planning to pass tax legislation without the help of Democrats, they are relying on the Senate’s budget reconciliation rules, which require only a simple majority, rather than 60 votes. However, tax cuts that add to the deficit would expire after 10 years under these rules.
The Trump administration has said that short-term cuts would be better than nothing, but Mr. Ryan and Representative Kevin Brady, the Republican chairman of the Ways and Means Committee, are pushing for legislation that does not increase the deficit. They want lower business and individual tax rates to remain in place indefinitely because they think this is better for promoting economic growth.
Despite the apparent lack of progress on taxes, Republicans in the House and Senate have been meeting frequently with President Trump’s economic team to craft a tax plan that they all can agree on. Initially, they hoped to pass a bill before August, but that goal has slipped to the end of the year.
Many business leaders and tax experts are pessimistic that anything will be passed in 2017.
Lobbyists have been hanging on lawmakers’ every word and working feverishly to protect their favorite deductions and loopholes. The border adjustment tax has been the biggest source of tension between the White House and…
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