White House studying carbon tax, value-added tax: report

White House studying carbon tax, value-added tax: report
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The White House is looking at the possibilities of creating a carbon tax and a value-added tax as part of tax reform, The Washington Post reported Tuesday.

The report comes as President Trump and congressional Republicans work toward passing tax-reform legislation this year. White House press secretary Sean Spicer said last week that the administration is in the "first stages" of tax-reform planning.

The Post's report cites administration officials and "one other person briefed on the process." Administration officials told the Post that no final decisions have been made about whether a value-added tax or a carbon tax would be included in a tax-reform plan.

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Trump will need to come up with ways to raise revenue if he wants to lower tax rates without adding to the deficit. House Republicans have proposed raising revenue through a tax on imports known as border adjustment, but that proposal is opposed by a number of GOP senators.

Value-added taxes are a type of consumption tax, while carbon taxes would be imposed on the manufacturing of some types of fuel. Some economists have supported these types of taxes because they could be more efficient than the current corporate-income tax.

But carbon taxes and value-added taxes have also faced pushback from Republicans in the past due to concerns that they would raise prices for consumers.

"Carbon tax, VAT — not happening," tweeted John Kartch, a spokesman Americans for Tax Reform, the group led by Grover Norquist.

A White House official told The Hill last month that “the Trump administration is not considering a carbon tax.” The Republican Party platform says "we oppose any carbon tax," and the House last year passed a resolution expressing opposition to such a tax.

During the 2016 GOP presidential primary, Sens. Rand PaulRandal (Rand) Howard PaulGOP political operatives indicted over illegal campaign contribution from Russian national in 2016 White House debates vaccines for air travel Senate lawmakers let frustration show with Blinken MORE (R-Ky.) and Ted CruzRafael (Ted) Edward CruzFBI investigating alleged assault on Fort Bliss soldier at Afghan refugee camp The Memo: Biden's immigration problems reach crescendo in Del Rio Matthew McConaughey on potential political run: 'I'm measuring it' MORE (R-Texas) proposed value-added taxes. Cruz explicitly did not use that term to describe his plan and was criticized for his proposal by a rival candidate, Sen. Marco RubioMarco Antonio RubioThe Memo: Biden's immigration problems reach crescendo in Del Rio Democrats face bleak outlook in Florida The Hill's 12:30 Report - Presented by Facebook - Dems attempt to tie government funding, Ida relief to debt limit MORE (R-Fla.).