Health-care overhaul isn't going to slow down tax reform, chief GOP tax writer says

Rep. Brady: Health care reform not slowing down tax reform

The "big fear" is that health-care overhaul is going to stall the Republican's tax reform plan, but chief Republican tax writer Rep. Kevin Brady told CNBC on Friday that's not going to happen.

"We're running parallel tracks in the House, in the Ways and Means Committee. We know the importance of both," the chairman of the House Ways and Means Committee said in an interview with "Power Lunch."

"This health care needs to get done. It is a big drag on the economy. We do need to resolve it and put back the market reforms but it's not slowing us down on tax reform."

President Donald Trump and Republicans have said that replacing Obamacare is going to be their first order of business.

However, there has been opposition on both sides of the aisle to the GOP's health-care bill, introduced Monday. That has some concerned the tax bill will get delayed.

BAT: Trump 'gets it'

There has also been some opposition to a controversial part of the tax reform package — the border adjustment measure, which would tax imports and exempt exports.

Several businesses, particularly retailers, have complained that it would increase their taxes and ultimately result in higher prices for consumers.

J.C. Penney CEO Marvin Ellison told CNBC on Thursday that it would make profitability "virtually impossible" in the short run.

"They're important to us, all the importers are important to us but I'm not going to have a tax code that favors foreign products over U.S. products," Brady responded.

However, he said also he doesn't want to see tax hikes or consumer price increases.

"So how we design this, how we phase it in to make sure as a currency adjusts, the economy adjusts, that we make sure it's all about growth, all about jobs," Brady said. "We want J.C. Penney to grow, as we do the other retailers."

Meanwhile, Trump has yet to publicly endorse the idea.

While Brady said he'd let the president speak for himself on whether he'll back the tax, he said Trump "gets it."

Brady also acknowledged that Trump doesn't like the name.

However, "it is the principle he likes and that's the common ground we're going to build off of."

— CNBC's Courtney Reagan contributed to this report.