Proposals from two powerful names in Congress to overhaul the US tax system could eliminate tax breaks enjoyed by corporations. Democratic Senator Max Baucus and Republican Representative Dave Camp could introduce their plans as early as next month. Reuters reported that the two were making separate proposals to de-clutter the tax code and decrease tax rates.
Aides and other sources told Reuters that the Baucus and Camp were thinking of cutting tax breaks and deductions. This would offset the cost of capping the tax rates for individuals and corporations at 25%. At present, the highest corporate rate is at 35%. For individuals, the highest rate tops out at 40%.
The proposals could put the billions of dollars in tax breaks now enjoyed by firms in the manufacturing, energy and other industries under fire. An aide revealed that both representatives also agreed on certain matters that needed to be revised under the code. This included tightening depreciation rules for companies and limiting the domestic activities deduction used by manufacturing firms.
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