President Obama and congressional Republicans agree the United States should repeal a bundle of business tax breaks, but that does not necessarily mean it will happen.
Rep. Todd Young, R-Indiana, sits on the House Ways and Means Committee, which writes the country’s tax code. He says business leaders have told him they’re willing to give up tax breaks tailored to specific industries — even incentives that have been longtime sacred cows in Washington.
“We need to have everything on the table,” says Young, “[including] deductions and credits that benefit narrow interests.”
President Obama has called for the same reform. But Young says Republicans want tax reform to be revenue-neutral, like the previous 1986 overhaul. The GOP says simplifying the tax code would allow a 10-point lowering of business tax rates. Young says an easier-to-understand tax code with lower rates would boost the economy by as much as 2 percent.
Democrats have suggested using the closing of loopholes to raise an estimated $100 billion a year.