President Barack Obama’s corporate tax reform plan, which will reduce the overall corporate tax rate, will be unveiled on Wednesday by the Treasury Department, a senior administration official reported to CNN. The official said the corporate tax reform plan is intended to “enhance American competitiveness by simplifying the tax code and eliminating dozens of tax loopholes and subsidies, incentivizing job creation and investment here at home and lowering the business rate while broadening the tax base.” The President’s proposal calls for lowering the overall corporate tax rate to 28 percent and the effective rate for manufacturing to 25 percent.
Obama’s proposal is crucial to fixing a system that is “uncompetitive, unfair, and inefficient,” the official reported to CNN. The plan would promote the production of clean energy, as well as more research and development. It would also establish a new minimum tax on foreign earnings to discourage companies from shifting productions or profits overseas. In the State of the Union address, Obama said, “Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it. So let’s change it.” Obama’s corporate tax reform will also cut taxes and simplify the tax code for small businesses and entrepreneurs, without adding to the nation’s deficit.
