Capitol Hill is pushing back against a report that the White House is seeking to cut the corporate tax rate from 35 percent to 15 percent, raising concerns that it would add trillions of dollars to the national debt.
President Donald Trump is scheduled to unveil his broad principles for tax reform on Wednesday. According to The Wall Street Journal, the announcement is expected to include the 15 percent corporate rate that Trump proposed during the campaign. The Tax Policy Center estimates the move would reduce federal revenues by more than $2.4 trillion.
"I don't know if he can get away with it," Sen. Orrin Hatch, chairman of the powerful Finance Committee, told reporters Monday.
Republicans have been planning to use a parliamentary process known as reconciliation to pass a tax reform bill without support from Democrats. However, they cannot use the maneuver if the bill adds to the deficit after 10 years.