Republicans Mistakenly Undermine R&D Tax Credit

Wall Street Journal: “Senate Republicans, in their push to pass a sweeping tax bill, undermined a research-and-development tax credit many companies use to encourage innovation, and business interests are in revolt. Late Friday, just hours before the Senate voted for the bill, Republicans decided to preserve the corporate alternative minimum tax instead of repealing it as planned. The change gave them money for lawmakers’ other priorities, but it could force many companies to lose tax breaks the bill’s authors intended to protect.”

“Addressing this problem is one of many challenges congressional Republicans face as they shepherd a final tax bill with implications for middle-class households, American businesses and the health-care system. The House and Senate passed competing bills that will now be merged into one.”

“Also surprisingly up for grabs: the corporate tax rate. President Donald Trump, after insisting on a 20% rate and getting it, this weekend said maybe it would land at 22%.”