Unity in Tax Overhauling is Proving to be Difficult

The efforts of the Republicans for an intention to unify the White House, Senate and the House of Representatives behind one single tax reform plan has appeared to be unraveling on Thursday. This is due to the fact that one of the 'Big Six' negotiators clearly stated that the group would not dictate tax policy in the Senate. When there was a congressional hearing about tax reform Senator Orrin Hatch said the Senate Finance Committee which he chairs, would not be the rubber stamp for the other leaders of the congressional Republic and senior political leader to the President Donald Trump who form the select group that has been working on the framework of the tax reforms for quite a few months. The 'Big Six' is all set to release its framework on tax reform on the 25th of September. This would be a release that will sound like the starting gun for Hatch's panel, the House Ways and Means Committee to produce legislations on tax reform which is currently expected in the month of October.

The rebuilding of the tax code of the United States is one of the top priorities of the US president, Donald Trump and congressional Republicans who had campaigned on it in the previous year. They have actually made very little progress since they have taken power in Washington in January this year through a closed door process that has excluded the Democrats. Senator Orrin Hatch mentioned that the group would not dictate any kind of direction that is taken in the committee. He also made it clear that the Finance Committee will not be bound by any of the previous proposals or framework for tax reform when they start putting the bill together. They would just be working independently.

Some of the analysts viewed these comments of the Utah Republicans as the initiation of what could result in an increasing rift among the Republicans in the Senate House and the White House. Analysts also mentioned that if this thing happens it would endanger the hopes of completing the first rebuilding of the tax code in 31 years before January. According to a report from Henrietta Treyz who is from the investment advisory firm Veda Partners stated that disagreements over both substance and process are creating a wedge between senior House Republicans who are involved in the tax-writing process and their Senate counterparts.

January 16, 2022 - 18:19
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