Reducing the corporate tax rate and making the tax code less complicated for businesses are among the proposals in President Obama’s recently released plan for business tax reform. CCH has issued a new Tax Briefing that thoroughly examines all the details and provisions of the administration’s blueprint for business taxes. CCH, a Wolters Kluwer business is a leading global provider of tax, accounting and audit information, software and services.
The framework calls for lowering the top U.S. corporate tax rate from 35 percent down to 28 percent. Furthermore, it would reduce the lowered rate to 25 percent for manufacturers and would repeal the use of the last-in-first-out (LIFO) method of inventory management. It also calls for a suggested new minimum tax on overseas profits and a proposed relocation tax incentive to return jobs to the U.S.
“The President’s proposal is designed to be a net revenue raiser,” said Mark Luscombe, JD, LLM, CPA, and CCH Principal Federal Tax Analyst. “The call to eliminate many current business tax breaks would produce more revenue than the lowered corporate tax rate would cost, according to the Administration.”