The Obama administration will propose lowering the top income-tax rate for corporations to 28% from 35% but would raise overall tax revenue by eliminating dozens of popular deductions in an effort to restructure the corporate tax code.
The proposal, which will be announced Wednesday, would lower the “effective” tax rate on manufacturers to “no more than 25%,” according to a senior administration official, down from the current average rate of about 32%. It raises taxes on oil and gas companies that would lose many large deductions and subsidies.
The plan would require U.S. companies operating overseas to pay””for the first time””a minimum tax rate on their foreign earnings.
Simply an updated form of bait and switch clothed as tax reform.
Those companies should pay the maximum tax rate.