House tax writers are discussing a gradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want—a schedule that would have the rate reach 20 percent in 2022, according to a member of the chamber’s tax-writing committee and a person familiar with the discussions.
The phase-in plan has been considered, but may not yet be final, said a member of the House Ways and Means Committee, who asked not to be named because the discussions are private. Under that plan, the rate may be reduced from its current 35 percent rate by three percentage points a year starting in 2018.
Slashing the rate to 20 percent for corporations is estimated to cost $1.6 trillion over a decade, according to estimates from the Tax Foundation—but it would be less costly under a phased-in plan. Under budget rules Republican leaders have said they plan to follow, if tax cuts aren’t offset and they add to the long-term deficit, they have to expire.
The phase-in of the corporate rate could be opposed by tax-cut advocates who say they want immediate changes to spur economic growth.
