Rep Dave Camp (R-MI), Chair of the House Ways and Means Committee, told the Wall Street Journal he wants to reduce the top corporate tax rate to 25% as part of a complete overhaul of the tax system.
Interestingly, aides later told the WSJ that the overhaul would keep income taxes at about 18-19% of GDP, where they currently stand. Aides later confirmed Camp is also looking at "broadening the tax base"--political speak for reducing deductions and credits - to cover the $2 trillion cost of lowering the rate to 25%.
One area that both House Republicans and Senate Democrats are reviewing is the tax treatment of debt and equity. The Internal Revenue Code gave the IRS authority to write regulations on this thorny topic nearly 30 years ago. After four failed attempts, the IRS gave up.
No one expects to resolve this debate quickly. The most likely scenario is for Congress to spend the next year and a half setting up the terms of the battle, and hash it out in the 2012 elections.