Senate Finance Committee Chairman Orrin Hatch, R-Utah, is not ruling out a border adjustment tax, despite opposition from many members of the Senate, The Hill reported.
"As far as I'm concerned, virtually any potential (offset) for reduced tax rates should be on the table, and that includes the so-called border adjustment tax," Hatch said.
His comments came at a conference hosted by Bloomberg BNA and Baker McKenzie, according to The Hill.
A border adjustment tax proposal now in the House would subject imports to a 20-percent tax, while exports would be exempt, the website noted.
Proponents of the plan argue it would help American exporters and their workers by imposing a tax on cheap foreign imports, The Washington Post noted.
And some estimate it has the potential to raise roughly $1 trillion in new revenue over the decade, according to the newspaper.
But retailers and some GOP lawmakers fear it could lead to higher prices on consumer goods. And the White House does not back the proposal in its current form, The Hill said.
Hatch said that his goal with tax reform "is to find the proverbial 'sweet spot,' that will maximize the growth potential of the final package without jeopardizing its prospects for passage."
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