The Senate’s top tax-writer says a small business provision that could benefit Sen. Bob Corker and other real estate investors was not “air-dropped” into the GOP’s final tax plan, that it mirrors language in the House tax plan, and that it was not included at the behest of Mr. Corker.
Sen. Orrin G. Hatch was responding to a letter from Mr. Corker on Sunday asking how the item ended up in the final bill, after a report over the weekend said the “controversial last-minute provision” could stand to benefit the Tennessee senator’s real estate holdings.
Mr. Corker was the lone GOP senator to vote against the Senate’s $1.5 trillion tax plan, which passed on a 51-49 vote earlier this month, but said late last week he plans to support the final version. GOP leaders hope to pass that bill this week.
But Mr. Hatch said the idea that a new proposal tied to “pass through” businesses popped up out of nowhere in the final plan “is an irresponsible and partisan assertion that is belied by the facts.”
Mr. Hatch also said in a letter to Mr. Corker on Monday that he was unaware of any attempt by the Tennessee senator or his staff to contact tax negotiators about that provision or anything related.
“To the contrary, virtually all the concerns you had raised in the past about the treatment of pass-through businesses in tax reform were to voice skepticism about the generosity of various proposals under consideration,” Mr. Hatch said.
Mr. Corker’s office said over the weekend he had no knowledge of the item in question, and didn’t request any specific tax items throughout the debate.
“Because this issue has raised concerns, I would ask that that you provide an explanation of the evolution of this provision and how it made it into the final conference report,” Mr. Corker wrote to Mr. Hatch. “I think that because of many sensitivities, clarity on this issue is very important and hope that you will respond in an expeditious manner.”
In a surprise move, Mr. Corker announced last week that he planned to support the final $1.5 trillion tax-cut plan, even though he voted against the similar Senate-passed bill and previously acknowledged that leaders hadn’t really solved his overriding concerns about the legislation’s effect on federal deficits and the debt.
Democrats seized on the weekend report as evidence of 11th-hour nefarious horse-trading, with some labeling the provision the “Corker Kickback.”
But Mr. Hatch said a modified version of what ended up in the final bill was in the House framework. That language would allow certain small businesses that file their taxes as individuals to benefit more from the new rules if they meet certain requirements.
“The [language] included in the conference report was derived from the House provision and is the product of a negotiation between the House and Senate tax-writing committees. It is that simple,” Mr. Hatch said.
• David Sherfinski can be reached at dsherfinski@washingtontimes.com.
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