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 second paragraph is the key . . . do you seriously think this will happen? What victories over big business lobbies can the administration point to? . . . None that I can think of. So here's what I think will happen. The Republicans in Congress will refuse to pass anything the administration proposes along these lines--along any lines, really--because they refuse to give the president anything. Especially, especially in this an election year. I don't know how good the proposal is, but I do know this. I don't like the sound of lowering taxes on businesses with the promise of offsets that aren't just automatic, just on principle. Give the corporate interests half a chance and they will gut the hell out of anything worthwhile in this proposal.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.