April 4, 2017 / 4:45 PM / 6 months ago

Trump not now considering value-added tax or carbon tax: White House

WASHINGTON (Reuters) - The White House on Tuesday said it not currently considering a value-added tax and a carbon tax as part of a planned tax code overhaul as it searches for ways to fund a major tax cut.

The Washington Post had reported the White House was considering the VAT and carbon tax reforms Tuesday, citing an unidentified administration official and a person briefed on the matter.

“The president’s team is hearing input from experts on all sides of the tax reform debate as we formulate what will ultimately be the president’s plan to enact the first significant tax reform since 1986. As of now, neither a carbon tax nor a VAT are under consideration,” said White House spokeswoman Lindsay Walters.

The administration is looking for funding for ways to pay for President Donald Trump’s promised cuts in middle class and corporate taxes.

This is the second time the administration has played down the chances of a carbon tax.

On Feb. 8, officials met with a group of Republicans who called for a $40 per ton tax on carbon emissions to fend off global climate change. Many Republicans have opposed a carbon tax arguing it would cut jobs and hike energy costs.

The Washington Post said the new options reflect the challenges presented by a possible border adjustment tax that Republicans have been considering.

A House panel has been working on a plan since mid-2016 that would cut the corporate tax rate to 20 percent from 35 percent, end taxing foreign profits for U.S.-based multinationals and cut other tax rates for businesses and investors.

The plan has divided businesses, prompting import-dependent industries to warn of higher prices for consumer goods from clothing and electronics to gasoline.

Reporting by Doina Chiacu and David Shepardson; additional reporting by Richard Valdmanis; editing by Tim Ahmann and Grant McCool

Our Standards:The Thomson Reuters Trust Principles.
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