GOP eyes corporate tax rate of 20 percent, retreating from Trump's lofty goal
By Mike DeBonis, Sean Sullivan and Damian Paletta September 22 at 7:55 PM
Republicans are targeting a corporate rate of 20 percent in their federal tax overhaul plan, according to three people familiar with the emerging blueprint — a number that represents a substantial cut from the current 35 percent rate but falls short of the 15 percent President Trump has long pushed for.
The plan remains fluid, said the Republicans, who spoke on the condition of anonymity to describe sensitive negotiations. But they said the template is taking a more definite shape ahead of a planned rollout next week by the “Big Six” negotiators from the White House, Senate and House.
This week, key members of the Senate Budget Committee reached a deal on the potential fiscal impact of the tax overhaul, agreeing to add as much as $1.5 trillion to the budget deficit over the next decade to accommodate the anticipated revenue lost under the GOP plan. Republicans believe the corporate rate cut and other incentives will stimulate economic growth, offsetting the revenue loss.
In another bid to spur immediate growth, Republicans familiar the emerging details said, the plan will also allow “full expensing,” which permits businesses to fully deduct their capital expenses immediately rather than writing off their depreciation over the course of several years. But that provision, they said, will not be permanent but will sunset after five years due to its cost.
Grover Norquist, president of Americans for Tax Reform, said a 20 percent corporate rate combined with five years of expensing would achieve the GOP’s long-standing tax objectives. Norquist has been involved in the plan’s drafting but is not one of the Republicans briefed on the latest details.
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https://www.washingtonpost.com/powerpost/gop-eyes-corporate-tax-rate-of-20-percent-retreating-from-trumps-lofty-goal/2017/09/22/b7b3040e-9fdb-11e7-9c8d-cf053ff30921_story.html
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