House Republicans Are Proposing a Big Corporate Tax Cut That Walmart Hates

Dylan Matthews: “Congressional Republicans, overseen by Speaker Paul Ryan and led by House Ways and Means Committee chair Kevin Brady, are planning a major overhaul of corporate taxes, as unveiled in their ‘A Better Way’ plan from June.”

“But perhaps most dramatically of all, they want to allow companies to totally exclude revenue from exports when calculating their tax burden, and to ban them from deducting the cost of imports they purchase.”

“The plan is a very clever way to address the political goals of both House Republicans and Donald Trump. The president-elect has made it clear he wants a populist trade policy that’s tough on imports and backs exporters. And while its actual effects on trade are milder than you might expect, the House GOP border adjustment plan offers Trump something that sounds like a populist trade policy without resorting to actual tariffs. Meanwhile, House Republicans have wanted a major corporate tax cut for years, and border adjustment, by increasing taxes on imports, raises lots of revenue and makes it easier to afford a huge rate cut.”

“But that doesn’t mean the policy is a sure thing. It’s already made some major corporate players — including retailers, who depend heavily on imports, as well as Koch Industries — into skeptics of Republican tax reform efforts, earning the GOP some powerful enemies as it begins its first major effort to remake the tax code in fourteen years.”

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