US Hill GOP Leaders, Mnuchin Say Tax Reform Won't Have BAT

--Republican Leaders Outline Tax Reform Principles

--GOP Leaders Say Details Will Be Developed In Congress's Two Tax Panels

By John Shaw

     WASHINGTON (MNI) - U.S. Treasury Secretary Steve Mnuchin, National Economic

Council Director Gary Cohn, and the Republican congressional leadership vowed

Thursday to push forward with a "once in a generation" opportunity to overhaul

the tax code, declaring their package will not include the controversial border

adjustment tax.

     In addition to Mnuchin and Cohn, the statement was issued by House Speaker

Paul Ryan, Senate Majority Leader Mitch McConnell, Senate Finance Committee

Chairman Orrin Hatch, and House Ways and Means Committee Chairman Kevin Brady.

     "We are all united in the belief that the single most important action we

can take to grow our economy and help the middle class get ahead is to fix our

broken tax code for families, small business, and American job creators

competing at home and around the globe," the GOP leaders say. 

     "Our shared commitment to fixing America's broken tax code represents a

once-in-a-generation opportunity, and so for three months we have been meeting

regularly to develop a shared template for tax reform," they add.

     The GOP leaders argue "tax relief for American families should be at the

heart of our plan." 

     "The goal is a plan that reduces tax rates as much as possible, allows

unprecedented capital expensing, places a priority on permanence, and creates a

system that encourages American companies to bring back jobs and profits trapped

overseas. And we are now confident that, without transitioning to a new domestic

consumption-based tax system, there is a viable approach for ensuring a level

playing field between American and foreign companies and workers, while

protecting American jobs and the U.S. tax base," they say.

     On the issue of the BAT, the Republican leader say "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 Republican leaders say the tax overhaul package will be drafted by the

House Ways and Means Committee and the Senate Finance Committee.

     "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," they say. 

     The GOP leaders add they hope Democrats in Congress will "participate in

this effort."

--MNI Washington Bureau; tel: +1 202-371-2121; email: john.shaw@marketnews.com

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