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Obama Seeks Corporate Tax Rate Cut
The Associated Press | February 22, 2012 | 02:50 PM EST

President Barack Obama on Wednesday proposed a lower corporate tax rate and an end to dozens of loopholes he said helps companies move jobs and profits overseas. "It's not right and it needs to change," he said.

The president wants to lower the corporate tax rate from the current 35 percent, the highest in the world after Japan. Under his plan, manufacturers would receive incentives so that their effective tax rate could be even lower.

Obama's election-year plan would set a new 28 percent corporate tax rate, still higher than the 25 percent rate sought by congressional Republicans.

"It's a framework that lowers the corporate tax rate and broadens the tax base in order to increase competitiveness for companies across the nation," Obama said in a statement.

Corporations would have to give up dozens of cherished loopholes and subsidies that they now enjoy. Corporations with overseas operations would also face an unspecified minimum tax on their foreign earnings.

The proposal outlined by Treasury Secretary Timothy Geithner would also eliminate tax loopholes and subsidies that Geithner called "fundamentally unfair."

Obama also would set a minimum tax on the foreign earning of U.S. companies.

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