9/7/2017

HOUSE OF REPS/PAUL RYAN/TAXES: “House Speaker Paul Ryan said Thursday [9-7-17] President Donald Trump’s goal of lowering the corporate tax rate to 15% would be difficult to achieve…
Mr. Ryan’s tax plan, which he released in 2016 alongside other House Republicans, called for a 20% corporate tax rate and a 25% tax rate on so-called pass-through businesses, which pay taxes through their owners’ individual tax returns.
But that 20% rate relied on about $1 trillion in revenue over a decade from a provision called border adjustment, which would have taxed imports and exempted exports from U.S. taxation. Republicans backed off that idea in July under pressure from retailers and divides among GOP senators, leaving a gaping hole in the plan to drive down the corporate tax rate.
Getting the corporate rate down is difficult because there are relatively few tax breaks that Republicans agree they want to repeal to offset the fiscal cost of lowering the tax rate from 35%. Each point reduces revenue by about $100 billion over a decade.
The U.S. corporate tax rate of 35% is the highest among major developed countries and companies say it distorts economic decisions and discourages investments in the U.S. Many companies don’t pay that full rate because of tax breaks created by Congress to encourage certain activities and because they are earning and booking profits in low-tax foreign countries.
Mr. Trump restated his 15% goal on Wednesday in a tax speech in North Dakota.”

-Richard Rubin and Kristina Peterson, “Ryan Casts Doubt on Trump’s Targeted 15% Corporate Tax Rate,” The Wall Street Journal online, Sept.7, 2017 10:52am