White House

Bannon could reportedly help to sway Trump on key House GOP tax proposal

Why President Trump's agenda is in trouble
Why President Trump's agenda is in trouble

House Speaker Paul Ryan has found top White House advisor Steve Bannon receptive to a border adjustment tax, a key piece of his tax reform plan that has faced opposition in the Senate, according to Bloomberg.

Disputes over the provision, among other pieces of the House plan, threaten to slow Republicans' efforts to change the American tax system this year.

Bannon showed the most enthusiasm for so-called border adjustment during Ryan's meetings with White House officials, Bloomberg reported, citing a senior administration official and a person familiar with the meetings. If White House officials can sway Trump into endorsing border adjustment, it could help to save the effort, which has faced staunch opposition among some senators.

Influential policy advisors Bannon and Stephen Miller, as well as Chief of Staff Reince Priebus and Commerce Secretary Wilbur Ross, support border adjustment, Bloomberg reported. Gary Cohn, head of the National Economic Council, and Treasury Secretary Steven Mnuchin do not back that part of the House plan, according to the report.

The key House GOP reform provision would tax imports, moving the U.S. closer to taxing consumption. Proponents like Ryan say it will encourage economic growth and raise $1 trillion in revenue over 10 years, enough to help to chop the corporate tax rate to 20 percent from 35 percent.

However, many large retailers have argued against border adjustment, saying the tax on lower-cost imported goods may get passed on to consumers.

Read the full Bloomberg report here.