Boustany said his plan would build on proposals in Camp's comprehensive tax reform legislation, the Tax Reform Act of 2014 (H.R. 1), to address issues such as corporate tax rates and patent boxes, a base erosion threat. As part of that process, Boustany said he is listening to concerns from various stakeholders, including those in the technology and pharmaceutical industries.
Boustany said his legislation will include a corporate rate reduction and a territorial approach -- basically a dividend exemption system. "We're still working on it, and working in conjunction with the committee," he said, adding he wanted to release the legislation as soon as it was finished.
Since his legislation is still under development with committee staff, Boustany declined to discuss the specifics of the anti-base-erosion proposals he is considering. "There's a sense of urgency because of what's happening with the OECD's base erosion and profit-shifting project, so this is a top priority for me to try to get legislation prepared and ready to go," Boustany told Tax Analysts.
Ways and Means is still moving ahead with tax reform plans under Chair Paul Ryan, R-Wis., even though lawmakers have had to work on trade and healthcare measures, Boustany said, adding that the Obama administration should take a more active role in passing tax reform legislation.
Boustany is not the only Ways and Means member to work on a separate tax reform plan. Committee member Devin Nunes, R-Calif., also introduced a business tax reform plan to reduce rates to 25 percent for both corporations and passthroughs and replace most existing deductions and credits with full expensing.
Nunes told Tax Analysts March 25 that he is seeking a revenue estimate from the Joint Committee on Taxation of his proposal, the American Business Competitiveness Act, and is also asking for feedback on the legislation from stakeholders.
Clarification, March 26, 2015: Boustany said he planned to release an international tax reform plan in the spring, not introduce one, as was originally stated in the article.
Luca Gattoni-Celli contributed to this article.
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