US tax reform road-show up and running; Baucus says 25% rate unlikely

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


US tax reform road-show up and running; Baucus says 25% rate unlikely

US tax reform roadshow up and running

Dave Camp and Max Baucus, the chairmen of the US’ two tax-writing committees, have kicked off their bipartisan tax reform road-show (The Simpler Taxes For America Tour) in Minnesota, with Baucus conceding that getting the corporate tax rate down to 25% is “a bit of a stretch”.

Business Roundtable member company, 3M, hosted the inaugural event in St. Paul, Minnesota, and Louis Chenevert, who chairs the Business Roundtable’s Committee on Tax and Fiscal Policy, welcomed the work of House Ways & Means Committee chairman Camp and Senate Finance Committee chairman Baucus.

“We applaud chairmen Baucus and Camp for their bipartisan effort to highlight the benefits of comprehensive tax reform to individuals and businesses across America,” said Chenevert, who is also chairman & CEO of United Technologies Corporation. “America’s business leaders stand united in our support for a comprehensive approach to creating a modern, competitive tax system, and we look forward to working with all policymakers to enact real reform that will help the US economy prosper and grow.”

3M is one of the companies that has tried to make the “stretch” of getting the corporate tax rate to 25% easier by indicating its willingness to put all of the corporate tax breaks it benefits from on the table for removal if it means a lower rate can be achieved.

But Baucus conceded that achieving a rate as low as 25% – close to the OECD average and the rate desired by House Republicans – could be too difficult.

“To be honest, I think 25% is a bit of a stretch,” he said.

Camp responded to reform-sceptics by saying that any such undertaking will go through periods where it appears action will never come.

“In the end, it is going to have to be a bipartisan Bill,” he said. “In the middle, it always looks like failure. The object is to get past that.”

The Summers plan

Meanwhile, Larry Summers, Harvard professor and former US Treasury Secretary, has proposed his own tax reform plan. Summers thinks the US should “eliminate the distinction between repatriated and un-repatriated foreign corporate profits for US companies and tax all foreign income (after allowances for taxes paid to other governments) at a fixed rate well below the current US corporate rate of 35%, perhaps about 15%”.

However, while this could remove the problem of US companies holding vast amounts of income abroad (estimates range from $1 trillion to $2 trillion), worryingly for taxpayers, Summers would also retrospectively impose a similar tax on accumulated profits held overseas.

more across site & shared bottom lb ros

More from across our site

Awards
It was also a memorable night for Baker McKenzie and its associated firms, after picking up 19 awards, including the coveted Asia-Pacific Tax Law Firm of the Year
Stocche Forbes Advogados, Utumi Advogados and Lobo de Rizzo Advogados have reached Tier 2 as competition intensifies in the region’s largest tax market
Ben Webster’s arrival represents a significant expansion of Withers’ London tax litigation practice, as the private client firm eyes further international growth
The combination swiftly builds on RSM’s addition of a new Lithuanian firm to its international network, signalling a European build-out
Tax teams must look beyond pillar two’s headline rules as R&D incentives and the US side-by-side deal create new strategic choices for multinationals, says Marta Pankiv of Tricentis
As funds work becomes more complex, Proskauer is betting that embedded tax expertise can strengthen its wider offering
The recently founded AI platform stands out in a crowded marketplace thanks to a compelling vision and friends in the right places
Advisers expect consumption tax reform to stay on course, but debt pressures could push the government towards tougher enforcement and incentive reviews
The firm demonstrated its sweet spot of litigation with an international twist with the recent win for the Danish tax authority…but it’s not a tax case
The recently formed firm has taken a break from hiring EY talent to expand its transactional tax and tax technology capabilities
Gift this article