THE WALL STREET JOURNAL: WASHINGTON—The Obama administration Wednesday proposed an overhaul of U.S. corporate taxes that would lower the maximum rate companies pay while eliminating scores of loopholes that allow businesses to reduce their payments.
The Treasury Department said the plan would overhaul the corporate-tax code, including lowering the top income-tax rate for corporations to 28% from 35%, cutting the effective tax rate even further for manufacturers, and eliminating popular deductions.
The plan also maintains or makes permanent some credits, such as for research and development and production of renewable electricity, which aims to encourage investment in wind and solar power.
"A key test of any reform should be whether the net impact of the changes improves the incentives for investing in the United States," Treasury Secretary Timothy Geithner told reporters.
Mr. Geithner said the overhaul should be fiscally responsible though the plan doesn't specify the amount it would raise.
Democrats and Republicans both endorse changes to the current U.S. tax code but are at odds on details. It's unlikely the two sides will strike a deal in a heated election year, though the administration says it hopes to lay the foundation for an eventual revamp of the system. » | Jeffrey Sparshott and Siobhan Hughes | Wednesday, February 22, 2012