Rep. Meadows likely a 'no' on border adjustment tax
House Freedom Caucus Chairman Mark Meadows said his "preference" is to do tax reform without the border adjustment tax on imports, a key component of House leadership's Better Way tax plan; "Let's go ahead and pass one without border adjustment, assuming that we can lower corporate [taxes] to 20 percent, flatten the rate out for individuals," he told me in an interview in his office.
Why this matters: Border adjustment is a key element of Republican tax strategy because it would raise so much money — more than $1 trillion over a decade — to offset other changes to tax law (or be a down payment on the wall with Mexico.) It would also serve Trump's policy goals by taxing imports. There are other ways to pay for tax reform, like closing loopholes and getting rid of deductions, but few are as likely and as lucrative. As chairman of the House Freedom Caucus, opposition from Meadows sends a signal to 35-or-so other members on the issue.