Tax framework likely not to call for 15 percent corporate rate: report

Tax framework likely not to call for 15 percent corporate rate: report
© Getty Images

The tax framework that key Trump administration officials and GOP leaders are planning to release next week is unlikely to call specifically for a 15 percent corporate tax rate, Politico reported Tuesday.

The framework instead is likely to indicate a corporate rate of 20 percent or less, according to Politico, which cited people familiar with the negotiations.

Republicans all agree that the current 35 percent corporate tax rate should be reduced significantly, but they've been divided over how far to cut the rate.

ADVERTISEMENT

While President Trump has called for a 15 percent corporate rate, both House Speaker Paul RyanPaul RyanGOP rep: Virginia defeat 'a referendum' on Trump administration After Texas shooting, lawmakers question whether military has systemic reporting problem Pence: Praying 'takes nothing away' from trying to figure out causes behind mass shooting MORE (R-Wis.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinOvernight Finance: GOP criticism of tax bill grows, but few no votes | Highlights from day two of markup | House votes to overturn joint-employer rule | Senate panel approves North Korean banking sanctions Fitch Ratings: GOP tax plan will hike deficits, be 'revenue negative' Live coverage: Day two of the Ways and Means GOP tax bill markup MORE have said in recent days that that rate would be hard to reach. If Republicans want to avoid exploding the deficit, lower rates will need to be offset by eliminating tax preferences and other revenue-raising provisions.

Politico also reported that the framework from the so-called "Big Six" tax negotiators will likely move away from a proposal to allow businesses to immediately deduct the full costs of their investments, known as "full expensing." Instead, the framework may call for allowing businesses to have accelerated write-offs on a short-term basis.

The tax plan House Republicans released last year called for full expensing, and Sen. Ted CruzRafael (Ted) Edward CruzOvernight Finance: GOP criticism of tax bill grows, but few no votes | Highlights from day two of markup | House votes to overturn joint-employer rule | Senate panel approves North Korean banking sanctions GOP criticism of tax bill grows, but few ready to vote against it Anti-gay marriage county clerk Kim Davis to seek reelection in Kentucky MORE (R-Texas) argued in favor of the idea in a speech last week. But full expensing would be costly, and some businesses would prefer that lawmakers focus on lowering rates.

Americans for Tax Reform President Grover Norquist, who regularly talks with GOP policymakers, said in July that Republicans were debating whether to propose full expensing on a permanent basis or just for three or four years.

A statement that the Big Six released in July called for "unprecedented" capital expensing. When asked about plans on expensing last week, House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyOvernight Health Care: Initial Senate tax bill doesn't repeal ObamaCare mandate | 600K sign up for ObamaCare in first four days | Feds crack down on opioid trafficking Overnight Finance: Senate GOP unveils different approach on tax reform | House tax bill heads to floor | House leaders eye vote next week | AT&T denies pressure for CNN sale GOP tax bill clears hurdle, heads to House floor MORE (R-Texas) reiterated that goal.

The Big Six includes Ryan, Mnuchin, Brady, Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchRead Senate GOP's tax bill Senate panel to start tax bill markup on Monday Senate set for clash with House on tax bill MORE (R-Utah), Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellMcConnell expects Paul to return to Senate next week Former Hill staff calls for mandatory harassment training Gaming the odds of any GOP tax bill getting signed into law MORE (R-Ky.) and National Economic Council Gary Cohn.