The White House is considering a value-added tax or carbon tax to raise revenue as it plans to chop corporate and individual rates, The Washington Post reported Tuesday.
However, the newspaper stressed, administration officials say the plan is not finalized and the Trump administration continues to mull alternatives.
Republicans have turned their attention to an overhaul of the U.S. tax system, a key campaign goal, after their first attempt to replace the Affordable Care Act failed. Opposition to border adjustment — a House GOP provision designed to raise revenue and help to offset major tax cuts — threatens to delay or trip up efforts to pass reform.
Value-added tax, which is widely used around the world, is consumption-based. A carbon tax would hit emissions of greenhouse gases related to the burning of fossil fuels.
The carbon tax would appear to clash with the priorities Trump has sought so far in his administration. He has taken steps to start rolling back environmental regulations on coal companies.
The White House did not immediately respond to CNBC’s request to comment.