Obama Plans Lower Corporate Rate

President’s proposal would also eliminate dozens of tax breaks for companies.

The Obama administration will propose today reducing the U.S. corporate tax rate to 28 percent from 35 percent along with removing tax breaks for companies to help offset lost revenue, an administration official said.

The plan would eliminate dozens of tax breaks and reshape the current manufacturing deduction to reduce the tax rate on manufacturing to 25 percent, according to the official, who outlined the proposal on condition of anonymity because it hadn’t been released. The restructured tax code would still include incentives for research and development and renewable energy.

Tougher Proposals

He also said the administration’s proposals would be “tougher” in some ways than those outlined by congressional Republicans.

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