Hatch awaiting JCT score on corporate integration
Senate Finance Committee Chair Orrin Hatch, R-Utah, has provided new details on his corporate integration proposal and is waiting on the Joint Committee on Taxation (JCT) for a revenue score.
Hatch is hoping to advance legislation that would address the double tax on corporate earnings by providing a deduction at the corporate level for dividends paid to shareholders. Hatch hopes to attract Democratic support and keep the proposal revenue neutral by raising the tax rate on dividends, which is currently at 20% before the 3.8% tax on net investment income.
He is working with the JCT, the official scorekeepers of Congress, on addressing the revenue issues. It may be difficult to keep such a proposal revenue neutral because so many corporate shareholders are tax-exempt entities like pension plans. Hatch also appears committed to leaving the current capital gains rate intact.
In addition, Hatch said he will continue to work with Brady on international reform, but believes corporate integration could do more to encourage investment in the United States and stem the tide of inversions. Major reform is difficult in an election year, but Hatch’s plan could provide important fodder for future tax reform efforts.
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