Arkansas’ 2nd District Congressman French Hill talked tax reform during a speech Tuesday to the Little Rock Rotary Club.
The Republican and former banker said he expects Congress to reconvene in September with a “unified approach” to tax reform crafted by the Trump administration and congressional tax leaders.
The Congress would then debate the proposals in the fall.
“Personally, I want to speak out for competitiveness on the international front, and also this idea of the way businesses are taxed,” Hill said after his speech. “I think that’s an important contribution I can make because of my business background.”
Hill said his priorities for reform include making the U.S. more competitive with other countries in its tax policies and changing how businesses pay taxes.
“The plan would be to drop the C-corp rate as much as they think they can and make it territorial, which means that international businesses that are paying taxes at the normal C-corp rate would no longer be double taxed when they bring money taxed abroad back into the U.S.,” he said. “Maybe we can also connect that to an infrastructure plan.”
Hill would also like to change how businesses using a pass-through entity like an LLC, LP or S-corp pay taxes.
“… [T]here would be a business income tax for pass-through entities, and people would no longer being paying at the personal rate for all the dollars that they distributed to themselves,” he said. “They’d have some compensation, they’d pay income tax rates on that — but the business would pay a low, fixed business income tax rate.”
During his speech, Hill noted the long period of low interest rates engineered by the Federal Reserve. While…
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