Close Menu
USTaxNews.live – Your Trusted Source for U.S. Tax & Finance Updates
  • Home
  • Audit
  • Finance
  • IRS
  • Legal
  • Tax News
  • Tax preparation
  • Tax Tips
  • USA Accounting
What's Hot

Some Companies Are Planning for Potential ICE Raids in the Workplace

July 10, 2025

Lululemon Problems Are Multifold and Pressing, Say Jefferies Analysts

July 10, 2025

Linda Yaccarino’s Rise and Fall at X: From Elon Musk Fixer to Exit

July 10, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated

Facebook X (Twitter) Instagram
USTaxNews.live – Your Trusted Source for U.S. Tax & Finance Updates
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
  • Home
  • Audit
  • Finance
  • IRS
  • Legal
  • Tax News
  • Tax preparation
  • Tax Tips
  • USA Accounting
USTaxNews.live – Your Trusted Source for U.S. Tax & Finance Updates
Home » A status quo rate in Trump tax bill is big win for corporations
Tax preparation

A status quo rate in Trump tax bill is big win for corporations

EditorBy EditorJuly 9, 2025No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email Copy Link


Executives at America’s largest corporations watched Donald Trump sign a massive tax-cut bill without any change in their own companies’ tax rates — and were grateful for their good luck.

For most C-Suite occupants, the paramount objective in the frenetic deal-making over the multitrillion-dollar tax-cut package was always protecting what they already had: a permanent cut in the corporate income tax from 35% to 21% they won under Trump’s 2017 tax law that has broadly benefited companies from Verizon Communications Inc. to WalMart Inc.

Corporate lobbyists entered this year’s fracas well aware that nothing is truly permanent in tax law when a congressional majority and president are determined to enact sweeping change. And they were wary of the risk lawmakers could partially roll back the corporate rate cuts to help defray the cost of more popular tax relief benefiting small businesses, individuals or tipped workers.

“There is always a universe where Congress is looking for pay-fors,” Charles Crain, the National Association of Manufacturers’ managing vice president of policy, said. “We have been really clear that the corporate rate should not be on the table from a negotiating perspective, and it turned out that it wasn’t.”

In the end, congressional Republicans seeking to partially offset revenue losses from the tax reductions largely stuck to cuts in safety-net programs such as Medicaid and rolling back clean-energy tax breaks passed under Democratic President Joe Biden. The remaining $3.4 trillion in projected additional deficits from the package wasn’t offset.

Trade associations mounted no major lobbying effort to get Republicans to deliver on a Trump campaign promise to further cut the corporate tax rate to 15%. 

Instead, they won a series of new permanent business tax breaks covering interest expensing, research and development spending and bonus depreciation of certain assets, including machinery and factories. Those provisions together are worth more than $500 billion over the next 10 years, according to Congress’s Joint Committee on Taxation.

Those breaks are especially valuable for the manufacturing industry, including equipment companies like John Deere and Caterpillar Inc. Pharmaceutical companies like Pfizer and Eli Lilly also stand to gain from research deductions.

Corporate lobbyists’ favorable position going into the tax fight flowed from a strategic choice Republicans made in 2017 when they passed Trump’s first administration tax cuts. They made corporate tax cuts permanent, in part by saving money on more-popular cuts benefiting individuals and pass-through businesses by making them temporary.

“The judgment was a political one,” Princeton University economist Owen Zidar said. “The idea was it was going to be really hard to have tax cuts expire for the middle class and for a broad range of people, so we can make those cuts temporary.”

Staving off an end-of-the-year tax increase threatened by those provisions’ expiration in turn became a central argument for passing the president’s new tax legislation. Even so, the tax and spending package only made it through the Senate with a tie-breaking vote cast by Vice President JD Vance.

Key trade groups representing Corporate America such as the Business Roundtable and the U.S. Chamber of Commerce applauded the outcome. Among the reasons both groups cited in their statements: no change was made to the corporate tax rate.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Editor
  • Website

Related Posts

Avalara rolls out AI tax research bot

July 9, 2025

IRS allows churches to endorse political candidates

July 8, 2025

Supreme Court lets Trump proceed with broad workforce cuts, including IRS

July 8, 2025
Leave A Reply Cancel Reply

News
Finance

WK Kellogg shares jump 40% on Ferrero deal report

Boxes of various Kellogg’s cereals are displayed on shelves at a Walmart Supercenter on May…

Eli Manning not interested in ownership bid

July 9, 2025

Hims & Hers offers generic semaglutide as Novo Nordisk patent lapses

July 9, 2025
Top Trending
IRS

IRS says churches may talk politics without running afoul of tax exempt status

Premium Membership Required

You must be a Premium member to access this content.

Join Now

Already a member? Log in here
IRS

NABA loses sponsors as political climate threatens diversity efforts

Premium Membership Required

You must be a Premium member to access this content.

Join Now

Already a member? Log in here
IRS

The pope took a vow of poverty. He may still need to file US taxes.

Premium Membership Required

You must be a Premium member to access this content.

Join Now

Already a member? Log in here

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated

Welcome to USTaxNews.live – Your Trusted Source for U.S. Tax, Accounting, and Financial News.

At USTaxNews.live, we’re committed to delivering accurate, timely, and practical information on everything related to U.S. taxes, IRS updates, legal issues, accounting practices, and the broader financial landscape. Whether you’re a taxpayer, accountant, legal professional, or business owner, we’re here to help you stay informed and ahead of change.

Our Picks

How Trump’s new spending law will impact taxes

July 7, 2025

U.S. tariffs on European goods threaten consumers on both sides of the Atlantic

July 7, 2025

Medicaid, SNAP cuts not supposed to take effect until after 2026 U.S. midterm elections

July 7, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated

  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
© 2025 ustaxnews. Designed by ustaxnews.

Type above and press Enter to search. Press Esc to cancel.