U.S. proposes to reduce top corporate tax rate: report

Wed Feb 22, 2012 1:37am EST

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(Reuters) - The Obama administration will propose slashing the top income tax rate for corporations to 28 percent from the current 35 percent, as part of a corporate tax reform plan that is set to be announced on Wednesday, the Wall Street Journal said.

The new tax proposal would also aim to raise overall tax revenue by eliminating dozens of popular deductions in an effort to restructure the corporate tax code, the Journal said.

The new tax proposal would lower the "effective" tax rate on manufacturers to "no more than 25 percent," a senior administration official told the newspaper.

The plan would also require U.S. companies operating overseas to pay for the first time a minimum tax rate on their foreign earnings, according to the Journal.

The new tax plan would raise an additional $250 billion in taxes over 10 years to offset or eliminate many temporary deductions, credits and other measures that are extended every year, such as a research and experiment tax credit, a senior administration official told WSJ.

Obama last week unveiled a $3.8 trillion budget-and-tax proposal that called for aggressive government spending to boost the economy and for higher taxes on the rich.

Treasury Secretary Timothy Geithner had told a Senate committee last week that "dozens and dozens" of tax loopholes were being targeted for closure, but that some tax incentives would be kept for "creating and building stuff in the United States."

The Treasury department could not immediately be reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Sakthi Prasad and Rachelle Younglai; Editing by Muralikumar Anantharaman)

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Comments (7)
Gall0wz wrote:
I wonder how a mortgage holder would expect to pay down his balance if he kept volunteering for pay cuts. This just proves that both democrats and republicans are the same once you get past the divisive issues they use to divide and conquer the American people. They are two heads atop the same beast…. both just puppets on the strings of their corporate superpac lobbiest masters.

Feb 22, 2012 2:22am EST  --  Report as abuse
danielmolitor wrote:
Welcome to Bizarro America.

Feb 22, 2012 2:27am EST  --  Report as abuse
Islander2010 wrote:
And what about the middle-class?

Feb 22, 2012 2:30am EST  --  Report as abuse
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