Tax writers grapple with international reform versus corporate integration
The top two congressional tax writers met last week to discuss how to tackle the priorities competing for their attention in 2016.
House Ways and Means Committee Chair Kevin Brady, R-Texas, held the first committee meeting of the year on pro-growth tax policies and is pushing for rate cuts and action on international reform to curb inversions. Senate Finance Committee Chair Orrin Hatch, R-Utah, emerged from the meeting more focused on corporate integration. Hatch said reforms aimed at eliminating the double tax on corporate earnings could be just as effective at slowing inversion activities.
Hatch also supports international reform and said doing both would be ideal, but acknowledged Congress may have to decide which area can be advanced further this year. Hatch and Brady have committed to weekly meetings for the rest of the year as they work toward their reform goals. Brady favors picking up where his committee left off last year by integrating a proposal for a reduced rate for income tied to domestic intellectual property with broader reform that would move the United States to a more territorial tax system.
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