WASHINGTON: The Obama administration is proposing to cut the corporate tax rate from 35 per cent to 28 per cent a senior administration official says.
In turn, corporations would have to give up dozens of loopholes and subsidies that they now enjoy. Corporations with overseas operations would also face a minimum tax on their foreign earnings.
Treasury Secretary Timothy Geithner yesterday was to detail aspects of President Barack Obama's proposed overhaul of the corporate tax system, a plan Obama broadly outlined 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 Obama, the proposal is part of a larger tax plan that is central to his re-election strategy.
The corporate tax plan dovetails with Obama's call for raising taxes on millionaires and keeping current rates on individuals making US$200,000 or less.
The 35 per cent corporate tax rate is the highest in the world after Japan. AP
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