Obama Unveils Proposed Overhaul of Corporate Tax Code

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In a sweeping proposed change to the U.S. tax code, President Barack Obama today announced his effort to close federal tax loopholes and slash the nation's corporate tax rate from 35 percent to 28 percent.

One tax break targeted by Obama is the so-called "carried interest" loophole, which allows private equity interests to pay the 15 percent capital-gains rate instead of the top 35 percent income-tax rate.

The current U.S. corporate tax rate of 35 percent remains one of the highest in the world, but is diluted by an abundance of loopholes and deductions allowing many businesses to pay no tax at all. Ultimately, U.S. corporations pay only half the taxes that companies in other rich countries pay, compared with the size of the economy, according to the Organization for Economic Cooperation and Development.

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