House is on '80% common ground' with Trump on taxes, Ways and Means chair Brady says

Rep. Brady: Clear we want to work with W.H. on tax plan

The top House tax writer said Thursday the chamber is on "80 percent common ground" with the White House on tax reform.

Republican Rep. Kevin Brady, chairman of the House Ways and Means Committee, echoed House Speaker Paul Ryan in saying the House largely agrees with the Trump administration on aspects of what would be the first tax reform since 1986. The White House is negotiating with Congress to strike a consensus on taxes after Republicans' attempt to replace the Affordable Care Act failed last month in dramatic fashion.

"We've got some differences on the rates, but only from the sense that we all want to go as low as we can," Brady told CNBC's "Squawk Box" on Thursday.

On Wednesday, top White House officials outlined President Donald Trump's plan, a proposal they said would be the "biggest tax cut" in U.S. history. It largely echoes the proposal Trump outlined as a candidate and did not include some key details.

Trump's plan calls for cutting income tax brackets from seven to three, with a top rate of 35 percent and lower rates of 25 percent and 10 percent. It pushes for a 15 percent business tax rate. The House's previous proposal aimed for a 20 percent corporate rate.

The White House was also vague about how it would pay for the plan without busting the federal deficit, though Treasury Secretary Steven Mnuchin insisted economic growth and the closing of loopholes would make up for the lost revenue.

The Trump administration signaled it will not support a border adjustment tax — a controversial revenue-raising provision of the House plan — as it currently stands. The White House said it will negotiate with Congress on that part of the plan, a strategy Brady supports.

"There's a good reason to stay at the table, see if we can't come up with a good, smart solution," Brady said.

Earlier Thursday, GOP Sen. David Perdue of Georgia told CNBC that he could not support a bill that includes border adjustment. Retailers and some lawmakers like Perdue have raised concerns that the plan, which would tax foreign-made product inputs, could pass costs along to consumers.

Brady said he thinks "at the end of the day, it won't raise consumer prices."

Obamacare repeal

Brady also addressed the renewed Republican effort to replace Obamacare. The hardline conservative House Freedom Caucus, which helped to sink Republicans' earlier attempt to revamp Obamacare last month, endorsed the changed proposal Wednesday.

Brady said House Republicans are "making progress," adding that he thinks "it's a mistake to set a deadline" for bringing it to a vote.