US Chamber to Ask Congress to Preserve 21% Corporate Tax Rate

The US Chamber of Commerce called on Congress to keep the 21% corporate tax rate and revive expiring parts of the 2017 Republican-led tax law.

The Chamber said in a policy statement Monday the law would lead to continued economic growth if extended, with new resources aimed at making its case to lawmakers and candidates on the ballot in November. Economic analyses and lists of priorities like the Chamber’s are filling up lawmakers’ desks as groups ramp up their Hill advocacy ahead of next year’s tax cliff.

“The U.S. Chamber calls on candidates and elected officials to support pro-growth tax policies that will help achieve the goal of at least 3% economic growth annually,” the statement arguing in favor of the policies said.

Some of the law’s provisions, such as the 21% corporate rate, are permanent. But lawmakers say everything’s on the table as they face a major tax code rewrite next year, when the law’s individual provisions are set to expire.

The Chamber also called on Congress to preserve lower international tax rates due to rise in 2025, and to reinstate expired deductions for research and development, some kinds of interest, and the full expensing of some assets.

Republicans are warm to extending parts of the 2017 law despite concern over growing deficits, while Democrats have called for raising taxes on the wealthy and increasing the corporate rate to 28% to offset the package’s cost.

Economic growth would only offset about 4.4% of a roughly $4 trillion price tag if lawmakers were to fully extend the law, projections from the University of Pennsylvania’s Wharton School show.