Discussions are ongoing between the administration and Congress on how to reform the tax code. Republican leadership in Congress and the White House plan to release a tax reform framework next week. The contents of the framework and to what extent it will focus on policy remains to be seen. Business leaders and lawmakers are hoping this will increase momentum for reform. “The business community is in the starting blocks here,” said Brian Dodge of the Retail Industry Leaders Association.
While interest from the sector is strong, tax reform accomplished using the procedural tool reconciliation to pass legislation using a simple majority has drawbacks as well. Budget resolutions can only negatively impact the deficit for 10 years. Republican leaders in Congress must decide if tax reform that isn’t permanent is the best or only option.
While reconciliation is still the likely vehicle for reform, there is interest from some players to make reform bipartisan. “We are not limiting our reach. We’re casting a wide net” said Kevin Kuhlman of the National Federation of Independent Business.