For a plan unlikely to become law anytime soon, Representative Dave Camp’s proposal to revamp the tax code is causing a lot of agitation among U.S. companies.
The American Petroleum Institute says accounting rule changes could depress energy production. The Financial Services Forum, representing chief executives of the nation’s biggest banks, warns that a tax on their companies’ assets would curtail lending. The National Association of Realtors objects to changes limiting deductions of mortgage interest and property taxes.
“This plan takes on the big corporations that for too long have seen the Republican Party as nothing more than a rubber-stamp for crony capitalism,” Chocola said.
Camp, 60, is a Michigan Republican who is chairman of the House Ways and Means Committee. He said yesterday that he expects to hear plenty of objections to specific provisions—and that the public wants a simpler tax system.
Those changes amount to “hidden taxes” that make the rate cuts for top earners less advantageous than they seem, Burman said. The loss of such benefits helps ensure that the tax burden doesn’t shift away from top earners, according to the nonpartisan congressional Joint Committee on Taxation.
Dividends and long-term capital gains would have a 40 percent exclusion, leaving effective rates for the highest-income taxpayers little changed.