Tax writers are also facing pushback against proposals to repeal the corporate interest expense deduction and the individual state and local tax deduction — so much so that they’re now considering keeping those deductions around in a more limited form.
A House GOP border adjustment tax proposal to tax imports and exempt exports, which would have raised an estimated $1.2 trillion over 10 years, died amid fierce opposition, for instance.
Tax writers say they plan to offset massive tax rate cuts for individuals and businesses by eliminating scores of deductions and credits that litter the tax code. But they have publicly identified only a few provisions they want to repeal.
How to pay for policy proposals lawmakers want to enact is an age-old question in Congress that has killed or stalled countless ideas. That question is now a dark cloud hanging over Republicans as they seek to overhaul the tax code.
House Ways and Means Chairman Kevin Brady and his fellow tax writers are trying to strike a balance on how to pay for their overhaul of the tax code. (Bill Clark/CQ Roll Call)