As the Republicans regroup following the failed attempt to repeal and replace the Obamacare in July, they are now focusing on an aggressive tax code rewrite. However, even before they get into the details of the bill, they are now asking how low they can go on tax cuts. For instance, leaders of the Republican Party said that they were contemplating about slashing corporate taxes by 15 percent. This means that the current 35 percent rate would fall to 20 percent. They have also deliberated on cutting taxes that are levied on sole proprietorships. Finally, the party leaders were deliberating on whether to increase individual taxpayer’s standard deduction by 50 percent which would mean doubling the current rate. However, the president still believes that it is possible to decrease corporate taxes to a low of 15 percent. House Ways and Means Committee Republican chairman Kevin Brandy says that they are discussing how they can bring down the tax cuts. Kevin Brady who is a Texas Representative says that the reforms will result in the lowest tax cuts in modern business history. However, the Republicans are yet to answer the question of how they are going to pay for these reforms.
Republican leaders together with the White House are supposed to release a unified framework of what they expect to achieve to the congress on Wednesday. This will be the beginning of a rush to pass the legislation before the end of the year. The administration says that the only way of offsetting government revenue that has been lost in years is doing away with loopholes that accompany corporate tax. At the same time, this could be achieved by the economic growth that will be realized from tax cuts. A framework was recently passed by the Senate Budget Committee. This framework aims at adding federal deficit which is intended to allow a $1.5 trillion tax cut and this should happen in the next 10 years. Reports have emerged that the Republicans are wrestling on how low they can go. It has also been revealed that most of them have settled for the 20 percent mark. The only thing left is to convince President Trump that 15 percent can’t work. A report by Tax Foundation says that a difference of 5 percent between what the president and Republicans differ on represents $700 billion. Experts speculate that the bill that will be tabled by the Republicans will resemble the Better Way Bill of 2016.