Congressional Tax Writers Consider Phasing In Corporate Rate Cuts

But White House might be cool to such a plan

United States Capitol building on Wednesday, Oct. 25, 2017. (Bill Clark/CQ Roll Call)
United States Capitol building on Wednesday, Oct. 25, 2017. (Bill Clark/CQ Roll Call)
Posted October 30, 2017 at 2:22pm

Senate Republicans are considering reducing the corporate tax rate gradually over the next five years as part of an overhaul of the U.S. tax code, according to GOP sources.

Both the House and the Senate are hoping to lower the tax rate for U.S. businesses to 20 percent, aides say.

Bloomberg News reported Monday that the House was also considering a five-year phase-in period for the corporate tax rate reduction in its version of the tax legislation set to be released Wednesday.

Such a proposal might face resistance from the White House, though.

President Donald Trump has not changed his initial “principles” on a tax overhaul bill, signaling that he would oppose phasing in the lowering of the corporate rate to 20 percent, White House Press Secretary Sarah Huckabee Sanders said Monday.

A spokeswoman for the Senate Finance Committee declined to comment. 

A gradual phase-in could improve the chances that Republicans find a way to fully offset the reduction. But matching pay-fors to each year of the implementation time period could be complicated and could also result in slower economic growth in the first few years.

John T. Bennett contributed to this report.