Hours after Senate GOP passes tax bill, Trump says he’ll consider raising corporate rate

The Washington Post ^ | 2 Dec 17 | David J. Lynch and Damian Paletta

[SkyPilot]

Hours after the pre-dawn passage of a $1.5 trillion tax cut, President Trump suggested for the first time Saturday that he would consider a higher corporate rate than the one Senate Republicans had just endorsed, in remarks that could complicate sensitive negotiations to pass a final bill.

On his way to New York for three fundraisers, Trump told reporters that the corporate tax rate in the GOP plan might end up rising to 22 percent from 20 percent.

Moving the corporate tax rate up by 2 percentage points could raise $200 billion, money Trump might need to try to satisfy the concerns of Republicans frustrated that the plan does not reduce top individuals’ tax rates enough or of others such as Sen. Marco Rubio (Fla.), who argued that the bill should do more for low-income families.

Rubio complained Friday that colleagues would not even allow him to move the corporate rate to 20.94 percent, saying they acted as if this would be a “catastrophe.”

If the White House tries to lower the top tax rate for individuals, it would mark a sharp departure from several months ago, when then-chief strategist Stephen K. Bannon advocated for raising the top rate paid by the wealthiest Americans as a way to follow through on the populist principles Trump invoked in his campaign.

Lawmakers in both the House and Senate had fought hard to keep the corporate rate low, with the Senate late Friday rejecting a Republican-backed proposal to push it up to 21 percent in exchange for more working-family tax breaks. The Senate passed the final version of its bill on a 51-to-49 vote just before 2 a.m. Saturday, with Sen. Bob Corker (Tenn.) as the lone Republican voting against it on concerns that it would drive up the federal deficit.

[SkyPilot]

Business tax all the way down from 35 to 20,” Trump told reporters, remarking on a core provision of the Senate bill. “It could be 22 when it all comes out, but it could also be 20. We’ll see what ultimately comes out.”

Lowering the corporate tax rate was a centerpiece of the plan, and Republicans have said that it will help businesses free up money to invest, grow and raise wages. They continually reshaped the tax-cut bills in the House and Senate to help businesses, even if it meant cutting back on tax benefits for individuals and families.

Senate Majority Leader Mitch McConnell (R-Ky.) dismissed suggestions that the corporate rate could rise to 22 percent, pointing to votes in both the House and Senate that would set it at 20 percent. “That would be a major change,” McConnell said in a telephone interview, adding that the vote showed he does not “have much of a margin.”

House conservatives have strongly opposed a higher corporate rate, with Rep. Mark Meadows (R-N.C.), chairman of the Freedom Caucus, saying that anything above 20 percent would be unacceptable. It remained to be seen how the president’s endorsement of a higher rate might impact their stance.

Trump appears to be knocking heads with the swamp, and realizes the current bills soak individuals at the expense of the corporations.

I don't know if that will go anywhere, but bless Trump for at least acknowledging it.

[gasport]

realizes the current bills soak individuals at the expense of the corporations.

?

[DoodleDawg]

How many votes will Trump save by raising the rate to 22% as opposed to how many will he lose by moving it from 20%?

[Sacajaweau]

He said that a week ago and even before that....everything is still negotiable....but in reality, I believe the house will "committee it" to a vote with little debate.

Cuz there really isn't anything to debate.

[SoFloFreeper]

My opinion? Trump will take what he can get now. 2018 will be spent pummelling Demon Rat senators in the states he won.

Once they are destroyed at the ballot box, 2019 will be spent creating better legislation.

[DIRTYSECRET]

You mean the wall gets built?

[rbmillerjr]

“Business tax all the way down from 35 to 20,” Trump told reporters, remarking on a core provision of the Senate bill. “It could be 22 when it all comes out, but it could also be 20. We’ll see what ultimately comes out.””

Trump DOES NOT say he’ll consider raising rate. So the headline is kind of on crack.

[EvilCapitalist]

Look at the source. It is the Compost after all.

[trebb]

Yep - take a few giant steps and then use the momentum of success to make it better.

[ResponseAbility]

Its from the Washington Compost. Therefore it is FAKE!

People have to get this through their heads.

[momincombatboots]

Lol... now that would be a tax on corporations, via paying federal, state and local taxes for hiring American kids... isn’t gonna happen. We have a cool prototype though.
As it turns out, I am not wealthy enough gh to be taxed at the small biz rate, being middle class, so I got a tax increase for Christmas. More off my table to redistribute. I feel truly bade for any retirees that are in my bracket. Work til you diecor starve.meanwhile oodles of money for everyone else.

[Zenjitsuman]

Collins got SALT to stay for her vote. Rubio is the one who proposed the 22% corporate rate we shall see if these really bad ideas make it thru conference.

I am disturbed by the raising of the Repatriation rate from
Trumps stated 10%, to 14.5% in the house bill and 14% in the Senate bill.

So do they really think the 40% increase from 10-14% will go unnoticed ? Do they really think CFO and CEO will repatriate 3 trillion dollars just to pay that kind of tax
when they could save by the status quo of leaving it in foreign banks and investing abroad? I thought the idea was a tax holiday, some holiday.

For instance I know a company who pays 21% tax rate, and has 70 billion cash abroad. Rubios rate of 22% would raise their taxes and 14% repatriation rate to me doesn’t seem a big saving. They have enough USA after tax earnings for running the company. If they repatriate 70 billion they pay Uncle Sam 10 billion more taxes.

[DoodleDawg]

Its from the Washington Compost. Therefore it is FAKE!

How can it be fake if Trump himself said it? This isn't some anonymous source. It's straight from the President's mouth.

[ResponseAbility]

Trump did not tell reporters he would consider raising corporate taxes, he said the rate may end up changed.

[Hostage]

WAPO lies.

Candidate Trump promised to lower the boom on hedge funds and carry traders raking in hundreds of millions individually while paying ZERO taxes.

[Thibodeaux]

It looks like Schumer got into your head and you swallowed the leftist talking point

[redgolum]

No company will move the money back unless they have to.

[ResponseAbility]

****No company will move the money back unless they have to****

Which may happen if it becomes economically persuasive to do so.

[Segovia]

Did the WaPo misquote him? NO, I don’t think so. He caves on another issue every day.

I’ll believe what he says when Hillary Clinton is brought before a GJ.

[Boomer]

For some reason folks are having a hard time understanding anything from certain networks are going to be a straight up lie like in this case. Trump didn’t say HE would consider raising rates; he’s saying the end result might be at 22%. It’s not like he would veto it if it went through the entire process and ended up being a little different than what he hoped for.