Last week marked the unveiling of Trump’s corporate-friendly tax reform package. Among many proposed changes is a slashing of the corporate tax rate from 35% to 20%. Since its release, industry groups from across the economy have been scrambling to make their stakes in the reform heard by Washington.
K Street Lobbyists Will See Big Business
The subsequent debate that will unfold between industry lobbyists and Congress will be nothing short of fireworks. Trade groups will fight to maintain their advantageous tax positions against others who are competing for their own loopholes in any legislation. Chris Krueger of the Cowen Washington Research Group, likened the approaching battle to the “corporate hunger games.” “Only one-sixth of lobbyists were involved with health care (give or take — assuming it is one-sixth of economy). Six-sixths of lobbyists are involved in taxes.”
As the NY Times reports, a short clause in Trump’s plan alludes to some of the biggest potential changes. Page eight ambiguously refers to plans to get rid of “numerous” deductions and to “modernize” tax rules impacting specific industries. Existing deductions for solar panels and mortgage interest, for example, provide huge tax incentives for the customers of those industries. Any proposed changes to these, as the plan suggests, would certainly spark a mad dash by lobbyists representing these businesses.
