The Obama administration will propose cutting the top tax rate for corporations but raising revenue overall by closing dozens of loopholes and subsidies as part of an election-year reform plan meant to draw a contrast with Republican contenders for the White House.
According to a senior administration official, the plan proposes reducing the top corporate tax rate to 28 percent from 35 percent.
While some companies would pay more and some less under Obama's plan, American businesses will pay more in aggregate, netting the government $250 billion over 10 years, The Wall Street Journal reports.
A tax revamp has been in the works at Treasury for two years, but passage in an election year is a long shot. Republicans in Congress seek even lower taxes for businesses, and consideration of a change in the code will surely touch off a lobbying frenzy from the corporate sector.
The proposal, to be unveiled by the Treasury Department, would set a maximum effective tax rate of 25 percent for manufacturers and establish a new minimum tax on U.S. companies' foreign earnings. For small businesses, the White House will propose simplifying filing, lowering tax rates, and ending some tax breaks.
Catherine Hollander contributed. contributed to this article.