WASHINGTON, D.C. (WKOW) -
President Barack Obama is proposing to cut the corporate tax rate from
35 percent to 28 percent and wants an even lower effective rate for
manufacturers, according to a senior Obama administration official.
In turn, he wants to close dozens loopholes and
subsidies businesses currently enjoy, and corporations with overseas operations
would also face a minimum tax on their foreign earnings.
Treasury Secretary Timothy Geithner is expected to talk in detail Wednesday about aspects
of President Obama's proposed overhaul of the corporate tax system, a plan the
president outlined in general terms in his State of the Union speech
last month.
Chances of accomplishing such change in the tax system are slim in a
year dominated mostly with presidential and congressional elections. But
for the President, the proposal is part of a larger tax plan that is central to
his re-election strategy.
The corporate tax plan coincides with President Obama's call for raising taxes on
millionaires and maintaining current rates on individuals making
$200,000 or less.
The 35 percent nominal corporate tax rate is the highest in the world
after Japan. But deductions, credits and exemptions allow many
corporations to pay taxes at a much lower rate.
