STOCK MARKET WATCH - Wednesday, 22 February 2012

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31. Obama Administration Readies Plan to Drop Corporate Tax Rate

http://www.bloomberg.com/news/2012-02-22/obama-to-ask-congress-to-lower-corporate-tax-rate-to-28-remove-loopholes.html

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 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.

President Barack Obama and Treasury Secretary Timothy F. Geithner have said corporate taxation is an issue that could provide an area for agreement with congressional Republicans and business groups.

“There is, I hope, more room for common ground on this, and we need to use this opportunity now to start to lay the foundation for the fundamental change ahead,” Geithner told the House Ways and Means Committee on Feb. 15.