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House reportedly considering phasing in corporate tax rate reduction

Republicans are considering a gradual lowering of the corporate tax rate in its reform plan, according to a Bloomberg News report.

The report sent the Dow Jones industrial average down more than 80 points at one point, according to traders.

"House tax writers are discussing a gradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want - a schedule that would have the rate reach 20 percent in 2022," the report said, citing a member of the chamber's tax-writing committee and a person familiar with the discussions.

This shouldn't come as totally unexpected. Representative Kevin Brady hinted at this phase-in as a possibility during an interview with CNBC last week at an event in Washington.

"There's been a lot of discussion about how we get to these rates and do it in a good, fiscally, responsible way. That has been floated," he said at the SIFMA annual meeting when asked about a phase-in. "I want to see as much of the growth accelerated in this tax reform plan as possible. Mainly because I think our tax payers deserve a stronger economy [than] what we have today. The sooner we become competitive the better. The rate plays a key role in it."

Reuters reported earlier in October that the corporate tax rate could be lowered in stages, reaching 20 percent in "three to five years."

See here for the full Bloomberg News report.

--With reporting by Ylan Mui