Obama wants to cut the corporate tax rate of 35 percent down to 28 percent and give manufacturers a preferred rate of 25 percent. He also wants a minimum tax on foreign earnings as a tool against corporate tax evasion and increased use of tax havens. The new twist is that in exchange for his support for a corporate tax reduction, he wants money generated by the tax overhaul to be used on a mix of proposals such as funding infrastructure projects like repairing roads and bridges, improving education at community colleges, and promoting manufacturing, senior administration officials said. Obama's proposal would generate a one-time source of revenue, for example, by reforming depreciation or putting a fee on accumulated foreign earnings.
The proposal calls for lowering the overall corporate tax rate from 35% to 28%, and the effective rate for manufacturing to 25%. The official, who laid out the plan's broad framework for CNN, said the proposal is essential to fixing a system that is "uncompetitive, unfair, and inefficient." The official told CNN the lower rate would be largely funded by eliminating dozens of tax loopholes and subsidies, and broadening the business tax base...
[The plan] explicitly ignores a recommendation of Obama's jobs council, which suggested exempting foreign income from taxation if repatriated to the US. Obama not only dismissed this idea, he did the opposite, introducing a new minimum US tax on international corporations' foreign earnings.
In case you were curious, we heard about this "grand bargain" offer from the AP wire.— Brendan Buck (@Brendan_Buck) July 30, 2013
As for the WH v Boehner scrap, WH says they called Boehner's office yesterday and left message. Call wasnt returned until just now.— Jake Tapper (@jaketapper) July 30, 2013
President Obama, Welcome to Chattanooga, one of hundreds of cities throughout this great nation struggling to succeed in spite of your foolish policies that limit job creation, stifle economic growth and suffocate the entrepreneurial spirit. Forgive us if you are not greeted with the same level of Southern hospitality that our area usually bestows on its distinguished guests. You see, we understand you are in town to share your umpteenth different job creation plan during your time in office. If it works as well as your other job creation programs, then thanks, but no thanks. We’d prefer you keep it to yourself.
Guy Benson is Townhall.com's Political Editor. Follow him on Twitter @guypbenson. He is co-authors with Mary Katharine Ham for their new book End of Discussion: How the Left's Outrage Industry Shuts Down Debate, Manipulates Voters, and Makes America Less Free (and Fun).
Author Photo credit: Jensen Sutta Photography
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