Ryan says US tax reform consensus nears, does not mention border tax

WASHINGTON, July 20 (Reuters) - U.S. House Speaker Paul Ryan said on Thursday that tax reform talks are nearing a consensus to lower business taxes by closing loopholes and special interest deductions, the latest sign that the unpopular proposed border tax may not be included.

Speaking at a New Balance shoe factory in Massachusetts, Ryan stressed the need to "level the playing field" for U.S. companies and their foreign competitors but failed to mention the border adjustment tax, or BAT, which has been his main policy for creating a more competitive U.S. manufacturing base.

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Speaker of the House Denis Hastert (L) administers the oath of office to Rep. Paul Ryan (R) of Wisconsin as his family looks on January 6, 1999 at the start of the 106th Congress. The oath is a recreation as the formal oath is administered to the entire congress as a body on the floor of the House. (photo by Rex Banner)
UNITED STATES - DECEMBER 12: Rep. Paul Ryan, R-Wis., speaks at a news conference in which House Republican leaders called for Permanent Tax Relief. (Photo By Tom Williams/Roll Call/Getty Images)
KRT US NEWS STORY SLUGGED: SOCIALSECURITY-DISCUSSION KRT PHOTOGRAPH BY GEORGE BRIDGES/KRT (April 14) Conversation on Social Security between Rep. Paul Ryan (R-WI), shown, and William Novelli, head of AARP, April 5, 2005 (lde) 2005 (Photo by George Bridges/MCT/MCT via Getty Images)
UNITED STATES - JULY 22: MEDICARE BRIEFING--Rep. Paul Ryan, R-Wisc., speaks at a Cato Institute briefing on Medicare reform in the Rayburn House Office Building. Tom Miller, director of Health Policy Studies at Cato, looks on. (Photo by Scott J. Ferrell/Congressional Quarterly/Getty Images)
WASHINGTON - SEPTEMBER 24: Rep. Paul Ryan (R-WI) questions Peter Orszag, director of the Congressional Budget Office, during a hearing on Capitol Hill about the impact of recent market turmoil on the federal budget on September 24, 2008 in Washington, DC. Orszag reported that while the impact is currently unknown, it is likely to be substantially less than $700 billion. (Photo by Brendan Hoffman/Getty Images)
WASHINGTON - APRIL 27: House Budget Committee ranking member Rep. Paul Ryan (R-WI) (R) delivers an opening statement during a conference committee meeting with Senate Budget Committee Chairman Kent Conrad (D-ND) (L) and House Budget Committee Chairman John Spratt (D-SC) in the U.S. Capitol April 27, 2009 in Washington, DC. House and Senate lawmakers have already struck a tentative deal on the FY2010 budget resolution and they hope to file a conference report after today's meeting. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON - MARCH 19: (L-R) U.S. House Minority Whip Rep. Eric Cantor (R-VA), Rep. Dave Camp (R-MI) and Rep. Paul Ryan (R-WI) listen during a news conference on the health care legislation March 19, 2010 on Capitol Hill in Washington, DC. The House will vote on the Health Care Reform Legislation on Sunday, March 21. (Photo by Alex Wong/Getty Images)
Representative Paul Ryan, a Republican from Wisconsin and chairman of the House Budget Committee, speaks during a news conference at the U.S. Capitol in Washington, D.C., U.S., on Tuesday, April 5, 2011. U.S. House Republicans today unveiled a plan to overhaul the federal budget and slash the deficit in coming years by about three-quarters, with a $6-trillion cut in spending and 25 percent cap on tax rates. Photographer: Joshua Roberts/Bloomberg via Getty Images
MEET THE PRESS -- Pictured: Rep. Paul Ryan (R-WI) left, and moderator David Gregory, right, appear on 'Meet the Press' in Washington, D.C., Sunday, April 10, 2011. (Photo by William B. Plowman/NBC/NBCU Photo Bank via Getty Images)
MILWAUKEE, WI - APRIL 01: Republican Presidential candidate, former Massachusetts Gov. Mitt Romney (R) jokes with U.S. Rep Paul Ryan (C) (R-WI) during a pancake brunch at Bluemound Gardens on April 1, 2012 in Milwaukee, Wisconsin. With less than a week before the Wisconsin primary, Mitt Romney continues to campaign through the state. (Photo by Justin Sullivan/Getty Images)
WASHINGTON, DC - APRIL 26: House Budget Chairman Rep. Paul Ryan (R-WI) is introduced before speaking about 'America's Enduring Promise,' and the federal budget, in a speech at Georgetown University April 26, 2012 in Washington, DC. During his speech, Ryan said that his proposed budget confronts the nation's growing $15 trillion debt before it impacts future generations of Americans. (Photo by Win McNamee/Getty Images)
NORFOLK, VA - AUGUST 11: Republican presidential candidate, former Massachusetts Gov. Mitt Romney (L) jokes with Rep. Paul Ryan (R-WI) (R) after announcing him as the 'next PRESIDENT of the United States' during an event announcing him as his running mate in front of the USS Wisconsin August 11, 2012 in Norfolk, Virginia. Ryan, a seven term congressman, is Chairman of the House Budget Committee and provides a strong contrast to the Obama administration on fiscal policy. (Photo by Win McNamee/Getty Images)
UNITED STATES - SEPTEMBER 14: Rep. Paul Ryan, R-Wis., Vice Presidential candidate, waves to the crowd after addressing the Values Voter Summit at the Omni Shoreham Hotel in Woodley Park. Photo By Tom Williams/CQ Roll Call)
NEWPORT NEWS, VA - SEPTEMBER 18: Republican vice presidential candidate, U.S. Rep. Paul Ryan (R-WI), pauses as he speaks during a campaign rally at Christopher Newport University September 18, 2012 in Newport News, Virginia. Ryan continued to campaign for the upcoming presidential election. (Photo by Alex Wong/Getty Images)
MIAMI, FL - SEPTEMBER 22: Republican vice presidential candidate, U.S. Rep. Paul Ryan (R-WI) hugs waitress, Lourdes Alcerro, during a campaign stop at Versailles restaurant in the Little Havana neighborhood on September 22, 2012 in Miami, Florida. Ryan continues to campaign for votes across the country. (Photo by Joe Raedle/Getty Images)
Republican presidential candidate Mitt Romney (R) and running-mate Paul Ryan share a laugh as they are introduced at a campaign rally September 25, 2012 at Dayton International Airport in Vandalia, Ohio. AFP PHOTO/Mandel NGAN (Photo credit should read MANDEL NGAN/AFP/GettyImages)
Representative Paul Ryan, a Republican from Wisconsin, arrives at a news conference on Capitol Hill in Washington, D.C., U.S., on Tuesday, Oct. 20, 2015. Ryan said he'd be willing to run for speaker of the U.S. House if Republicans unify behind him now, end leadership crises and let him continue spending time with his family. Photographer: Andrew Harrer/Bloomberg via Getty Images
Representative Paul Ryan, a Republican from Wisconsin and chairman of the House Ways and Means Committee, center right, walks down the steps of the U.S. Capitol building following a vote in Washington, D.C., U.S., on Friday, Oct. 9, 2015. Ryan is under heavy pressure from fellow Republicans to run for U.S. House speaker after a hard-line faction forced Speaker John Boehner to resign and his top lieutenant to drop out of the race. Photographer: Andrew Harrer/Bloomberg via Getty Images
Representative Paul Ryan, a Republican from Wisconsin, walks to a meeting in the basement of the U.S. Capitol in Washington, D.C., U.S., on Tuesday, Oct. 20, 2015. Ryan is set to meet with a group of House conservatives Tuesday as he weighs a potential run to replace Speaker John Boehner under pressure from fellow Republicans. Photographer: Andrew Harrer/Bloomberg via Getty Images
Representative Paul Ryan, a Republican from Wisconsin and chairman of the House Ways and Means Committee, center, talks to the media after walking out of the U.S. Capitol building following a vote in Washington, D.C., U.S., on Friday, Oct. 9, 2015. Ryan is under heavy pressure from fellow Republicans to run for U.S. House speaker after a hard-line faction forced Speaker John Boehner to resign and his top lieutenant to drop out of the race. Photographer: Andrew Harrer/Bloomberg via Getty Images
UNITED STATES - OCTOBER 20 - Rep. Paul Ryan, R-Wis., speaks at a news conference following a House Republican meeting, on Capitol Hill in Washington, Tuesday, Oct. 20, 2015. Ryan is stating that he will run for speaker only if he receives enough GOP support by the end of the week. (Photo By Al Drago/CQ Roll Call)
US Speaker of the House Paul Ryan, Republican of Wisconsin, awaits the arrival of Israeli President Reuven Rivlin for a meeting at the US Capitol in Washington, DC, December 10, 2015. AFP PHOTO / SAUL LOEB / AFP / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
WASHINGTON, DC - DECEMBER 10: House Speaker Paul Ryan (R-WI) holds his weekly press briefing on Capitol Hill on December 10, 2015 in Washington, D.C. Paul Ryan spoke on topics including Donald Trump and the spending bill. (Photo by Allison Shelley/Getty Images)
WASHINGTON, DC - DECEMBER 15: Speaker of the House Paul Ryan, (R-WI) speaks during a Politico interview at the Grand Hyatt on December 15, 2015 in Washington DC. Ryan was interviewed by Politico's Chief White House Correspondent Mike Allen during a Politico Playbook Breakfast. (Photo by Mark Wilson/Getty Images)
U.S. House Speaker Paul Ryan (R-WI) (L) holds ceremonial swearing-in for Representative-elect Ralph Norman (R-SC) on Capitol Hill in Washington, U.S., June 26, 2017. REUTERS/Yuri Gripas
Speaker of the House Paul Ryan (R-WI) speaks after Senate Republicans unveiled their version of legislation that would replace Obamacare on Capitol Hill in Washington, U.S., June 22, 2017. REUTERS/Joshua Roberts
Speaker of the House Paul Ryan introduces his new tax policy at the National Association of Manufacturers Summit in Washington, U.S., June 20, 2017. REUTERS/Aaron P. Bernstein
Speaker of the House Paul Ryan visits members of the Republican team prior to the Congressional Baseball Game at Nationals Park in Washington, U.S., June 15, 2017. REUTERS/Aaron P. Bernstein
U.S. Speaker of the House Paul Ryan speaks to the press about President Donald Trump, former FBI Director James Comey and Russia investigations as Republican Conference Chairman Rep. Cathy McMorris Rodgers (R) looks on after a closed meeting of the Republican leadership of the House of Representatives on Capitol Hill in Washington, U.S. May 17, 2017. REUTERS/Aaron P. Bernstein
Speaker of the House Paul Ryan (R-WI) listens as U.S. President Donald Trump speaks during a meeting with members of the Republican Congressional leadership at the White House in Washington, U.S., June 6, 2017. REUTERS/Joshua Roberts
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Ryan's remarks, coming about a week ahead of an end-of-July deadline for top White House officials and Republican leaders in Congress to agree on a tax reform framework, could indicate that President Donald Trump's promised tax code overhaul is taking on a more orthodox shape after months of closed-door talks.

Republicans in the House of Representatives had billed the BAT as a more effective way to pay for tax cuts than closing loopholes, because it would raise more than $1 trillion over a decade by effectively taxing imports while exempting exports from taxation.

"We are going to slash the corporate tax rate to level the playing field and the business tax rate for all businesses," Ryan told his audience.

"So what we need to do is, we need to throw out those complicated loopholes, those deductions, those special interest loopholes," he added.

Ryan said cutting the corporate tax rate from a current 35 percent rate to a 20 percent corporate rate is "very realistic."

Administration officials have said negotiators realize Trump's proposed 15 percent corporate rate is unlikely without expanding the federal deficit.

White House budget director Mick Mulvaney said on Thursday that Republicans should be willing to accept "short-term increases on deficits" for tax reform to drive economic growth.

Ryan said tax reform would also include accelerating business expensing, double the standard deduction for individuals, and retain popular deductions for charity donations, home mortgages and retirement.

"We have basically found where our consensus lies on these major issues, which we think are sort of the key cornerstones of tax reform," the Wisconsin Republican said.

His failure to mention border tax adjustment could fuel speculation that House Republicans are moving away from the idea in discussions among the so-called Big Six principles.

The six are Ryan, Senate Republican leader Mitch McConnell, Treasury Secretary Steven Mnuchin, White House adviser Gary Cohn and the Republican chairmen of two tax-writing committees. (Additional reporting by David Alexander, Doina Chiacu and Roberta Rampton; Editing by Chris Reese)

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