Cramer: Flynn's resignation could cause more delays for Trump tax reform

Cramer: Flynn will be today's discussion

The White House disarray after National Security Advisor Michael Flynn resigned could cause delays for corporate tax reform, CNBC's Jim Cramer said on Tuesday.

On Monday, the White House confirmed Flynn's resignation after days of speculation about his status within the administration and intense scrutiny into his discussions about Russia prior to Trump's inauguration.

Cramer said that continued discussions about issues other than tax reform could be the last straw for some investors.

"Flynn is now part of the roadblock to getting it so we have corporate tax reform," Cramer said on "Squawk on the Street. "... Some people will sell stocks betting we're not going to get anything in 2017."

Michael Flynn
Carlos Barria | Reuters

Stocks and Treasury yields had jumped in the wake of President Donald Trump's Nov. 8 victory, amid the prospects for looser regulations in certain sectors, lower tax rates and fiscal stimulus.

However, investors appeared to be worried about delays for tax reform following the Trump administration's focus on a travel ban and Republicans working to repeal and replace Obamacare.

Last Thursday, Trump, facing doubts about the speed of his promised tax reform, said he will make a "phenomenal" tax announcement in a few weeks.

In a press briefing following Trump's announcement, White House spokesman Sean Spicer told reporters that Trump realizes middle-class Americans need tax relief and that the U.S. needs "fundamental comprehensive tax reform."

The president also wants to create a tax plan that keeps jobs in the U.S. and incentivizes companies to grow, Spicer said.