Hopes of standoff coming closer to an end
San Francisco, CA -- (SBWIRE) -- 03/22/2013 -- President Barack Obama and Republican senators discussed a stand-alone corporate tax reform rather than creating a comprehensive approach to updating the United States tax code.
Jeff Flake, a freshman Senator from Arizona stated that the idea was raised by fellow Republican Senator Patrick Toomey of Pennsylvania, and that Obama had been open to the idea. There has yet to be any decision made during the meeting in the U.S. Capitol.
Obama stated that he would be open to supporting a revenue-neutral corporate tax reform effort, according to the senator.
"If he's agreed, and he has, that the lowering of rates with the corporate tax will be revenue neutral, there's no reason we can't do that now," said Flake.
Obama met with Republicans as part of an effort that spans two weeks, wherein the president is attempting to reach out to lawmakers. The maneuver is in hopes he can improve his chances of a broader deficit-reduction deal that could be seen down the road.
The budget standoff within Washington has lasted for quite some time now, and the major gap is over the extend of how much individuals ought to be taxed. Democrats stand on the side of taxing the wealthy and businesses, while Republicans want to tax lower income individuals.
Obama and the republicans are ever-nearer on taking points that could lead to an eventual agreement. Currently, the rate of 35% for the top earners is the steepest within the industrial world, however, many companies pay little-to-no taxes due to tax loopholes.
The White House proposed that a “framework” for corporate tax reform could see a cut to 28%. One of the largest sticking points is the many businesses that are set up as entities that do not pay any corporate tax.
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