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

The plan would eliminate dozens of tax breaks and reshape thecurrent manufacturing deduction to reduce the tax rate onmanufacturing to 25 percent, according to the official, whooutlined the proposal on condition of anonymity because it hadn'tbeen released. The restructured tax code would still includeincentives for research and development and renewable energy.

President Barack Obama and Treasury Secretary Timothy F.Geithner have said corporate taxation is an issue that couldprovide an area for agreement with congressional Republicans andbusiness groups.