Mulvaney: Pass-through entities need to be addressed in tax reform

White House budget chief Mick Mulvaney said Sunday that the issue of pass-through entities still needs to be addressed in the Senate’s tax-reform legislation.

“I think Sen. Johnson has sort of homed in on one thing that we knew was sort of the last big substantive piece of the puzzle and that’s how do you deal with these pass-through entities,” Mulvaney told CBS’s “Face the Nation,” referring to Sen. Ron Johnson (R-Wis.).

{mosads}Johnson is the only Senate Republican to come out as opposed to the upper chamber’s tax-reform legislation, arguing that the current legislation does not provide enough aid to pass-through entities.

{mosads}Mulvaney said that the subject of pass-through entities, which pay the individual income tax rate as opposed to the corporate rate, “needs to be worked out.”

“Senator Johnson has hit on this. It needs to get fixed, but I’m absolutely comfortable that it will be,” Mulvaney said.

Johnson announced his opposition to the current bill last week.

“Well, what I want to see is the information to prove the kind of economic growth we’re going to get with all of our tax revisions,” Johnson said last week during an interview with CNN.

The GOP, which has a 52-seat majority in the Senate, can only afford one more defection in order to achieve its tax-reform overhaul.