Obama Administration To Unveil Corporate Tax Reform Plan, Will Lower Top Corporate Income-tax Rate To 28 Percent | Fox News
While I agree with lowering the corporate tax rate in conjunction with eliminating deductions, I'm not that keen on a minimum tax on foreign earnings. It might only be a drop in the bucket to existing international companies, but it will probably deter companies from expanding their businesses into the US in the future.The Obama administration plans to unveil a long-awaited corporate tax reform plan on Wednesday, lowering the top income-tax rate for corporations to 28 percent from 35 percent while eliminating deductions.
Corporations with overseas operations would also face a minimum tax on their foreign earnings, new tax benefits would be given to incentivize U.S. manufacturers while taxes on oil and gas companies would see their taxes go up while losing many large deductions and subsidies. The plan aims to raise $250 billion over 10 years.
Read more: Obama Administration To Unveil Corporate Tax Reform Plan, Will Lower Top Corporate Income-tax Rate To 28 Percent | Fox News
From a political side, he's trying to back the GOP candidates into a corner on the issue by making corporate tax rates a non issue( GOP candidates are calling for a rate lower than 28%). But by adding the minimum tax provision, he's leaving the door ajar.