The skeletal framework will not be accompanied by any tax legislation. Instead, it will act as a foundation for a tax bill.
According to three sources familiar with the matter at hand, the White House plans on releasing a brief document in early to mid-September which will outline a framework for overhauling the U.S. tax code.
Significantly, the 3 to 5 page document will not be accompanied by tax legislation, said the sources on the condition of anonymity since they were not authorized to speak publicly on the matter.
Although the lack of accompanying tax legislation is seen as an indication of the Trump Administration’s struggle to advance its domestic policies, however this framework has the backing from the “Big Six” congressional and administration leaders on tax reform – the same group that released a joint statement on taxes earlier in July, after months of closed-door talks.
It is however unclear whether all of the Big Six have agreed on the release.
But in signs of changes to come, the White House has told business representatives and lobbyists to expect a tax reform framework next month, said two sources.
The White House had no comment.
The Framework document will act as a starting point for a tax bill by laying out areas of agreement between the Senate, the House of Representatives and the Trump Administration. It could also include inputs from discussions with Democrats.
As per corporate lobbyists and independent analysts, any tax legislation is unlikely to be approved before early 2018.
Although House Ways and Means Committee Chairman Kevin Brady and Senate Finance Committee Chairman Orrin Hatch have said they plan to consider tax legislation later this year, they have however not set a deadline.