May 5, 2017
By Naomi Jagoda
Senate Majority Leader Mitch McConnell (R-Ky.) said Tuesday that Speaker Paul Ryan’s (R-Wis.) border-adjustment proposal to tax imports “probably wouldn’t pass the Senate.”
In an interview with Bloomberg TV, McConnell said that he is meeting with Ryan and Treasury Secretary Steven Mnuchin in the hopes of reaching an agreement on a tax-reform proposal.
“Border adjustability is a pretty controversial thing in the Senate, but we’ll see what’s in the final thing we agree to,” McConnell said.
McConnell’s comments echo other senators’ remarks about the border-adjustment proposal, which would subject imports to U.S. taxes while exempting exports. Sen. Lindsey Graham (R-S.C.) said earlier this year that the House plan wouldn’t get 10 votes in the Senate.
Even among House Republicans, the proposal may be a tough sell. An analysis from The Hill has found that there are dozens of House GOP lawmakers who have concerns about the border-adjustment tax or are undecided about it.
The border-adjustment proposal was part of a tax plan House Republicans released last year, and supporters argue that it would remove incentives for companies to move jobs overseas. But critics argue that it would result in higher prices for goods that consumers purchase.