A House conservative's idea to hike the corporate tax rate to help offset the costs of President-elect Donald Trump's policies is a nonstarter with some Senate Republicans, The Hill reported.
A member of the Freedom Caucus, Rep. Chip Roy, R-Texas, floated a plan during a recent interview to bump corporate tax rates up from 21% to help pay for Trump's upcoming policy agenda.
"Absolutely not," Sen. Markwayne Mullin, R-Okla., said of the idea.
Finance Committee member Sen. John Cornyn, R-Texas, said, "We're in a competition with other countries to attract capital. Countries like Ireland and others have reduced their corporate tax rate and benefited tremendously."
Roy, who drew Trump's ire more than once last month over the stopgap funding bill and the future of Rep. Mike Johnson, R-La., as House speaker, told The Hill last week that he thinks everything should be "on the table" when it comes to offsetting the costs of Trump's agenda.
"I'm on the record as saying everything should be on the table, and I'm on the record of having said, 'Why should we just allow corporate taxes to stay in place, or think about lowering them, if ... we're not doing what we need to do on the individual tax rate side or if we're not balancing the budget or being deficit neutral?'" Roy told The Hill.
"I'm not a guy who's in favor of raising any tax rates," said Senate Majority Whip John Barrasso, R-Wyo.
Roy posited a 25% corporate tax rate last year, according to the report, but it's not being considered by Republicans on the House Budget Committee now. In advance of the reconciliation bill, committee Republicans are considering lowering the corporate tax rate to 20% or even 15%, The Hill reported.
"Corporate taxes is the people that employ individuals. It doesn't just affect large corporations ... 50% of those employed around the [United States] and 75% of those inside Oklahoma is employed by small corporations," Mullin said.
Mark Swanson ✉
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