President-elect Donald Trump’s pledge to reform the corporate tax system in order to boost the economy could go down in flames if Republicans get side-tracked with a complicated plan to change trade with Mexico, said Larry Kudlow, who served as a senior economic adviser to Trump’s campaign.

In a CNBC discussion with Rep. Devin Nunes, a Republican from California, Kudlow criticized any kind of plan that would include value-added taxes or a system of tariffs and subsidies on cross-border goods.

“This is the kind of thing that could doom business tax reform, which in my opinion is the most important pro-growth element and really the heart of President-elect Donald Trump’s plan for economic growth and jobs,” said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor.

He criticized Mexico for enacting two value-added taxes on U.S. goods that made them less competitive with the country’s domestic producers.

“There’s a problem that exists, but this isn’t the right solution, and I don’t want a national value-added tax,” Kudlow said. “I don’t want a national sales tax. One of the issues here is that Mexico re-neged on the original deal back in 1994, adding a 5 percent VAT tax applied to imports from America.”

In a separate segment, Kudlow said the president-elect's plan for a ''tax holiday'' so that American companies can bring back profit that was generated overseas at a lower rate will revitalize America.

"You will re-oxygenate the entire economy," said Kudlow, a Newsmax Finance Insider, radio talk-show host and CNBC senior contributor. "I just think repatriation of cash is absolutely terrific," he told CNBC.

While Trump thinks the influx of cash will create jobs, the New York Times reported that corporate boards and executives may have different ideas. “They are likely to use much of the estimated $2 trillion held overseas to acquire businesses in the United States, to buy back their own stock or to pay down debt, say advisers of America's top corporate executives,” the Times reported.

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