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

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

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While President Trump has called for a 15 percent corporate rate, both House Speaker Paul RyanPaul Davis RyanGOP leaders pitch children's health funding in plan to avert shutdown Lawmakers see shutdown’s odds rising Fix what we’ve got and make Medicare right this year MORE (R-Wis.) and Treasury Secretary Steven MnuchinSteven Terner MnuchinWeek ahead: Lawmakers eye another short-term spending bill Reagan balanced trade — Trump can, too GOP may increase IRS’s budget 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 CruzWith religious liberty memo, Trump made America free to be faithful again Interstate compacts aren't the right way to fix occupational licensing laws Texas Dem: ‘I don’t know what to believe’ about what Trump wants for wall 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 BradyHouse passes tariff-relief bill GOP may increase IRS’s budget Overnight Finance: Congress barrels toward another shutdown crisis | Canada worries Trump will withdraw from NAFTA | Blue-state Republicans push tax law changes | Chamber CEO calls out Bannon, Warren MORE (R-Texas) reiterated that goal.

The Big Six includes Ryan, Mnuchin, Brady, Senate Finance Committee Chairman Orrin HatchOrrin Grant HatchKoch groups: Don't renew expired tax breaks in government funding bill Hatch tweets link to 'invisible' glasses after getting spotted removing pair that wasn't there DHS giving ‘active defense’ cyber tools to private sector, secretary says MORE (R-Utah), Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellSessions: 'We should be like Canada' in how we take in immigrants NSA spying program overcomes key Senate hurdle Overnight Finance: Lawmakers see shutdown odds rising | Trump calls for looser rules for bank loans | Consumer bureau moves to revise payday lending rule | Trump warns China on trade deficit MORE (R-Ky.) and National Economic Council Gary Cohn.