Ryan promises tax overhaul this year despite GOP divisions


Aides said he is not expected to delve into the details of tax proposals.

Paul Ryan vowed on June 20 to complete USA tax reform within 2017.

"Paul Ryan is not serious about tax reform". That claim puzzled many in the tax policy community for at least two reasons. But the GOP is planning a busy fall.

Ryan also weighed in on the American Health Care Act's status in the Senate. It would require consumer price increases of 15 percent or more to retain profitability, effectively creating a new tax paid by consumers.

The border-adjusted tax is estimated to raise about $1 trillion in revenue over a decade, which Ryan has described as essential to paying for tax cuts. Mr. Ryan has acknowledged the concerns, but he is also forging ahead in the absence of an alternative.

An aide for Ryan told Business Insider that the speech will kick off a "sales pitch" for tax reform to get done this year but will "not litigate the issues now being resolved between the House, Senate, and administration".

Ryan will not delve into details about tax reform provisions on Tuesday but will describe major provisions of any major legislation including a "territorial" system that would no longer tax the foreign profits over US corporations.

More news: Andres Iniesta Could Leave Barcelona After 15 Glowing Years
More news: House votes to undo much of Dodd-Frank banking law
More news: Brutal slaying near mosque stemmed from road rage

In his speech, Ryan is expected to emphasize the importance of permanent reforms, reject the notion that legislation should do little more than reduce tax rates and make a case for mechanisms to prevent US corporations from moving income, assets and jobs overseas. "We must think differently, so that once again we make things here and export them around the world".

A growing number of Republicans say they would rather just cut taxes than take on the hard task of simplifying the tax code, which would include eliminating many tax breaks to finance lower overall tax rates. Conservatives and some parts of the Trump administration favor a tax cut.

Ryan and Mnuchin are among six officials trying to craft a tax deal in closed-door discussions with Cohn, Senate Republican leader Mitch McConnell and the Republican chairmen of two tax committees. Could it be that your large multi-national American donors can afford tax accountants and tax attorneys who will reduce their firm's effective tax rate to below what small and mid-sized firms will eventually pay? "We need to get this done in 2017", Ryan said in the speech to be delivered Tuesday afternoon to the National Association of Manufacturers, a powerful Washington lobby group.

- Intra-Republican disputes threaten the GOP effort with every trade-off.

Republicans are planning to pass a tax package under a procedure in which they need only a simple majority in the Senate - preventing Democrats from blocking it. That won't be easy because there are big disagreements among Republicans over spending levels for the military and for domestic programs.

- Then there is a pile of narrower issues that will crop up as Republican members find their home-state and home-district industries objecting to pieces of the tax bill.

But Ryan's speech will be an upbeat push to getting tax cuts done.