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IPFS News Link • Senate/Senators

Tax Bill Fiasco:

• by Tyler Durden

Suddenly Republican tax reform is looking deader than a doornail.

According to the Washington Post, which cites " four people familiar with a draft of the legislation " not only is there little to no compromise on the way forward, but the only thing Senate Republicans leaders can agree on is to punt the centerpiece of the GOP tax plan by at least a year, and are considering a one-year delay in the implementation of a major corporate tax cut. This change would lower the corporate tax rate from 35 percent to 20 percent in 2019, not 2018 as currently constructed by a House GOP bill. And while the delay would save $100 billion in much needed funds, it would be met with resistance from Trump, who wants the tax cuts implemented immediately.

In any case, to ensure that companies don't postpone major investment decisions and wait for the lower rate in 2019, Senate Republicans are considering allowing companies to immediately deduct capital investments in 2018 from their taxable income, the WaPo sources said.