Finance

House to consider phasing in corporate tax cut: report

Lawmakers who are drafting the House’s tax-reform plan are discussing gradually phasing in a corporate tax-rate cut that would bring the corporate rate down to 20 percent in 2022, Bloomberg reported Monday.

The phase-in plan, which has not been finalized, would allow for corporate tax rate to be reduced from its current 35 percent rate by three percentage points per year, starting in 2018.

U.S. stocks fell to session lows in the wake of the news, Bloomberg reported.

The White House indicated it is not yet on board with the plan.

“The president has laid out his principles and it doesn’t include the phasing in,” press secretary Sarah Huckabee Sanders said, according to Reuters.

“I don’t have reason to believe we have changes on that front at this point.” 

The corporate tax cut is considered a key part of the Republican plan. President Trump and GOP lawmakers have argued lowering the rate would help domestic businesses compete with those overseas, unleashing economic growth.

The White House originally sought to slash the corporate rate to 15 percent, but the target was ultimately set at 20 percent when the  framework for the legislation was released in September.

The House Ways and Means Committee is slated to unveil the tax bill on Wednesday after months of work.

The details of the plan are still closely held as Republicans seek to iron out the details, but GOP leaders are looking to move at a break-neck pace to get the bill passed.

The White House is hoping the House will pass a tax bill by Thanksgiving, Sanders said Monday. 

– This story was updated at 3:19 p.m.

 

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