The ‘Big 6’ Are Making Progress on Tax Reform Framework

The White House and Congressional Republicans have reached broad agreement on several potential offsets to fund tax cuts, according to sources familiar with the negotiations.  Present options include capping the mortgage interest deduction, eliminating the state and local tax deduction, and eliminating the interest deduction for businesses.  Additionally, there is consensus among the decision makers, colloquially known as the “Big 6,” to include a mandatory deemed repatriation provision in any tax reform proposal.  The resultant corporate tax rate would likely fall between 22-25 percent with experts agreeing that anything below 20 percent would require the implementation of new taxes.  Whether or not the tax reform legislation will be revenue neutral is still uncertain, but House Ways and Means Committee Chairman Kevin Brady has stated that the drafters of the tax reform bill would accept losing tax revenues initially as they believe tax cuts will create enough economic growth to overcome early shortfalls.

Trump’s team and lawmakers making strides on tax reform plan


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