President Obama: Tear Down This Rate!

The White House today announced a new tax reform plan for corporations. The plan would lower rates from 35% to 28%. However the deduction would be paid for by eliminating deductions, loopholes, and subsidies. Manufacturing would not have to pay a higher tax rate than 25%. The United States has one of the highest federal income tax rates for an industrialized country. The plan also says there should be a minimum rate for foreign income. This rate would be x-the foreign nation’s tax rate. The x is because the plan doesn’t give a specific number. The Administration says that the plan will not add a dime to the deficit.

This plan could be politically risky for Republicans because if they do not pass it, the President can say their anti-tax reform. Tax reform as been a cornerstone of the Republicans’ platform. The Republicans have been trying to paint President Obama as a tax-raising liberal. The move comes in a series where President Obama gives Republicans politically tricky plans. One other includes the President’s plan to restructure the Commerce Department, which has not been implemented.

About Tyler

Tyler is the chief media reporter for TKNN, with the news organization since its founding in November of 2010. He has previously served as chief political reporter and chief political anchor for TKNN.

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