Clearing a path to a lower corporate tax rate

What will comprehensive tax reform look like?

We hear a lot of talk from elected officials of both parties about the need to lower the corporate tax rate. There is also talk that it be done in a revenue neutral manner. That might mean different things to both parties. It might mean that there would be some revenue boost from lower rates (Republicans) versus more of a number crunching exercise (Democrats).

In 2011, the Joint Committee on Taxation estimated that it would cost $717 billion over ten years to lower the corporate rate to 28%.  Much of the revenue to make this revenue neutral comes from timing changes, such as slower depreciation. I think there will need to be an increase in the capital gains rate and cut back on some generous individual tax preferences (such as the exclusion for employer-provided health coverage and the home mortgage deduction) to help lower both teh corporate and individual rates.

I've got a short article in the 10/31 AICPA Corporate Taxation Insider on this topic - here.  I hope you'll take a look.

What do you think it will take to lower the corporate tax rate?