Updated Sep 12, 2023, 8:16pm EDT
politicsNorth America

New corporate tax cuts unlikely even if Trump wins, says key Senate Republican

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The Scoop

A top Senate Republican poured cold water on slashing the corporate tax rate below 21%, as former President Trump and his advisors are reportedly discussing should they emerge victorious in the 2024 presidential race.

“They’re entitled to their opinion, but I don’t see it happening anytime soon,” Sen. John Cornyn (R-TX), a member of the Senate Finance Committee, told Semafor.

“I generally believe in keeping taxes as low as you can,” he said. “I’m more worried about the expiration of the individual tax rates in 2025. That just provides additional reasons if we need any for getting the majority back in 2024 because that’s going to be a big fight.”

According to a Washington Post report, Trump and his advisors have considered pairing new corporate tax cuts — pushing the overall rate as low as 15% — with a new 10% global tariff.

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Know More

Cornyn’s comments are notable since they reflect the thinking of a senior figure who’s been talked about as a potential successor to Senate Minority Leader Mitch McConnell. Scrutiny on McConnell’s health has mounted after a pair of episodes where he froze at news conferences, raising fresh questions about his ability to helm Senate Republicans.

Trump, though, isn’t alone in his desire to cut corporate taxes further. His 2024 rival Mike Pence supports cutting the corporate tax rate to 15%, telling Radio Iowa that a “15% corporate tax rate would take America from being competitive to having an advantage.”

The individual tax cuts under the 2017 GOP tax law expire in 2025, which coincides with the expiration of a temporary boost to the child tax credit as well. In addition, expanded subsidies for Americans buying their own health insurance through the Affordable Care Act marketplaces also end in 2025, setting up what some are starting to call tax “Armageddon.”