Obama Wants to Lower Corporate Tax Rate as Part of Overhaul
Reporting from Washington—
President Obama wants to significantly lower the top corporate income tax rate to 28% as part of a broad overhaul that would raise an additional $250 billion from businesses over the next decade by eliminating many loopholes and other breaks, according to a senior administration official.
Full details of the administration’s long-awaited corporate tax reform plan will be released later Wednesday morning by Treasury Secretary Timothy F. Geithner, touching off an election year debate about how much corporations should pay in taxes.
The broad parameters of Obama’s plan include lowering the effective tax rate — the real amount corporations pay after tax breaks are deducted — to no more than 25%, down from the current 32%. But the package would seek to raise $250 billion more from corporations over the next 10 years.
To reduce the lure of relocating jobs overseas, Obama will propose a minimum tax for U.S.-based multinational companies. The president pushed that idea in his State of the Union address last month.