Tax overhaul in trouble as opposition to import tax grows

WASHINGTON (AP) — A key part of House Republicans' plan to overhaul the way corporations pay taxes is on life support, leaving lawmakers scrambling to save one of President Donald Trump's biggest priorities.

The impasse increases chances that Republicans will simply pass a tax cut instead of truly overhauling the tax code.

A proposed tax on imports is central to the House GOP plan to lower the overall corporate tax rate. It would generate about $1 trillion over the next decade to finance the lower rates without adding to the budget deficit.

But the tax faces strong opposition from retailers, automakers and the oil industry, and a growing number of Republicans in Congress have come out against it. They worry that it will increase the cost of imports, increasing consumer prices.