“Pro-growth international tax policies are instrumental to both the ability of American companies to compete globally and grow not only their global footprint, but also U.S. jobs and operations,” the Chamber of Commerce said in a recent letter to Republican Sen. Orrin Hatch, chairman of the finance committee.
Hatch requested public input last month as he attempts to lay the groundwork for support on the Republicans’ signature issue, and the committee has received hundreds of thousands of responses, a spokeswoman said. On Tuesday, the House is slated to release its fiscal 2018 budget, which is expected to provide an outline of its plans for reform.
One open question is whether the administration intends to pay for any tax cuts — and if so, how.
In the White House’s 2018 budget, officials assumed that the reductions would not add to the deficit because they would be offset by economic growth and eliminating deductions. However, budget analysts have declared those projections unrealistic, and the nonpartisan Congressional Budget Office declined to score the administration’s plan because it lacked “specificity.”
The path lawmakers choose will help determine the size and scope of any tax package. If the legislation adds to the deficit, congressional rules prevent Republicans from passing it in the Senate with a simple majority vote. Instead, lawmakers would have to settle for a smaller, temporary cut — a compromise that business groups warned would be disappointing.
“The goal of tax reform should be to level the playing field for American businesses and American workers. Without lowering rates and moving to a territorial tax system, corporate inversions and the movement of…