Prominent GOP Senators are casting doubt on the likelihood that a border adjustment tax will be enacted as part of tax reform. The lack of consensus may cost the Congressional GOP the opportunity to get out ahead of President Trump who is expected to offer his tax plans in the coming weeks.
Currently the markets are euphoric with hopes of economic growth and tax reform. The Congress can’t afford to miss this opportunity to enact pro-growth changes. As Louise Weingrod of Johnson & Johnson Inc. stated, “If Congress doesn’t get legislation to Trump’s desk in 2017, there will likely be an uptick in companies seeking foreign acquirers to move outside the U.S. tax net.”
The GOP Congress needs to get their (tax reform) act together.