GOP in discussion with Trump on border adjustment tax, Rep. Brady says

Rep. Brady: We are in discussion with Trump on border adjustment tax

House Ways and Means Committee Chairman Kevin Brady defended the Republicans' plan for a border adjustment tax on Wednesday, and told CNBC they are discussing it with President-elect Donald Trump and his team.

Earlier this week Trump called the tax "too complicated" in an interview with The Wall Street Journal. However, on Tuesday, he told Axios the idea is "certainly something that is going to be discussed."

The measure is part of the House Republicans' corporate tax plan and would tax imports and exempt exports.

In an interview with "Power Lunch" on Wednesday, Rep. Brady, R-Texas, said the border adjustment tax is actually "very simple policy."

"For the first time, we'll be on a level playing field with China and our competitors. For the first time, we'll have eliminated any tax incentives to move jobs or research or headquarters overseas," he said.

Holtz-Eakin on border adjustment tax plans

He said Trump and his team are "deeply engaged" in talks with Republicans about the tax.

"We are very much on the same page," Brady said.

He also dismissed the idea that a component that some see as complicated could kill the entire Republican corporate tax plan.

Doug Holtz-Eakin, president of the American Action Forum and former chief economic policy advisor to John McCain's 2008 presidential campaign, also favors the border adjustment tax.

"This is the most dramatic change in business taxation ever proposed in the United States, period. If you want to get dramatically better economic performance and that is the goal — you want growth and you want it in the U.S., you have to make dramatic changes," he told "Power Lunch."