Cutting the nominal rate to 25 percent while broadening the base would discourage wasteful tax planning and, some believe, would make United States-based multinationals more competitive.
Broadening the base is the wiser choice.
The other scenarios include broadening the base overall, broadening the base to only take in fresh food, increasing the rate to 15%, and increasing the rate to 15% while also broadening the base to take in fresh food.
"This is really about broadening the base," said Eric D. Rudder, a senior vice president.
He advocated broadening the base of investments held by traditionally conservative pension funds.
This proposal follows the Ronald Reagan model by broadening the "base" of tax without increasing rates.
And, he added, "for significantly broadening the base of students studying to lead America's schools".
The basic logic of tax reform is that you lower the rates while broadening the base.
In the past 10 years, Congress has striven to bring down tax rates while broadening the base of taxable income.
At the Politico event, Mr. Cantor was asked if broadening the base means tax increases for the poor.
"This means that they were broadening the base of the profits that corporations were actually taxed on".
