The White House is willing to accept reforms to corporate taxes as part of a deal to appease business leaders uneasy with Democratic proposals to raise income taxes to avoid the fiscal cliff, The Wall Street Journal reported citing people familiar with the talks.
Corporate taxes have been off the table as of now, but sources tell the newspaper they may be used as an olive branch, though details were lacking.
Executives applauded reports to address corporate tax reform.
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“Start at wiping out all of the deductions, figuring out where that tax rate is — whether it’s 25 percent, 22 percent, 15 percent, whatever it is,” said Douglas Oberhelman, CEO of construction-equipment maker Caterpillar, The Journal reported.
“I think all of us are on that wavelength today to begin the process.”
Corporate income taxes account for roughly 10 percent of government revenue.
The White House and Congress are negotiating ways to avoid the fiscal cliff, a combination of expiring tax breaks and inbound spending cuts due to take effect at the same time early next year.
Failure to avoid the cliff could send the country into a recession next year, though sticking points remain when it comes to raising income taxes on top U.S. earners.
Democrats want to the Bush-era tax breaks to expire for top earners, a proposal opposed by many Republicans.
President Barack Obama had proposed raising revenue by $1.6 billion, but has cut that figure to $1.4 billion to appease Republicans.
Republicans want details as to where the White House sees revenues rising and where it sees spending coming under the knife.
“We’re still waiting for the White House to identify what spending cuts the president is willing to make as part of the ‘balanced approach’ he promised the American people,” Michael Steel, spokesman for House Speaker John Boehner, R-Ohio, told CNN.
“The longer the White House slow-walks this process, the closer our economy gets to the fiscal cliff.”
Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.
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