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The White House on Tuesday denied that it is currently considering two controversial provisions to raise revenue as part of its broad tax overhaul.
Earlier in the day, The Washington Post reported that the Trump administration was looking at a value-added tax or carbon tax as part of its reform plan. However, the newspaper stressed, administration officials say the plan is not finalized and the Trump administration continues to mull alternatives.
"As we have said many times, the President's team is hearing input from experts on all sides of the tax reform debate as we formulate what will ultimately be the President's plan to enact the first significant tax reform since 1986. As of now, neither a carbon tax nor a VAT are under consideration," a White House spokeswoman said in a statement.
Republicans have turned their attention to an overhaul of the U.S. tax system, a key campaign goal, after their first attempt to replace the Affordable Care Act failed. Opposition to border adjustment — a House GOP provision designed to raise revenue and help to offset major tax cuts — threatens to delay or trip up efforts to pass reform.
A value-added tax, which is widely used around the world, is consumption-based. A carbon tax would hit emissions of greenhouse gases related to the burning of fossil fuels.
The carbon tax would appear to clash with the priorities Trump has sought so far in his administration. He has taken steps to start rolling back environmental regulations on coal companies.
The White House did not immediately respond to CNBC's request to comment.
Watch: White House says no to VAT, carbon tax