Don't count on value-added or carbon taxes from Republicans.
On Tuesday, The Washington Post reported that the Trump administration was looking at the two provisions as part of its tax reform plan. They could potentially raise revenue to help offset major tax cuts if the House's current border adjustment proposal hits a snag.
House Ways and Means Committee Chairman Rep. Kevin Brady signaled Tuesday that a proposal with value-added or carbon taxes would face resistance in Congress.
"Both the House and Senate in recent years have weighed in pretty heavily with resistance against those ideas," the top House tax writer told CNBC's "Closing Bell."
As the Texas Republican spoke, the White House said in a statement that "as of now" those taxes are not "under consideration."
Brady said he expects some form of border adjustment to remain part of a Republican tax plan. He added that the House may consider some tweaks to the plan to address "valid concerns" brought by retailers, particularly those who buy component parts abroad.
He called a potentially revised plan a "border equalization tax," without going into much detail about what would change. Retailers and some lawmakers have opposed border adjustment, saying that it could raise the cost of product inputs and potentially pass those costs onto consumers.
Republicans will need some form of new revenue, though, if they want to chop tax rates without expanding the deficit.
Brady also did not commit to the White House's public goal of passing tax reform before Congress' August recess, though he said he wanted to get it done this year. He said he learned from the failed attempt to replace the Affordable Care Act not to "rush."
Watch: Carbon & VAT taxes not under consideration
