President Obama on February 2 submitted an FY 2016 budget that reaffirms his support for ‘business tax reform'.
President Obama on February 2 submitted an FY 2016 budget to Congress that reaffirms his support for ‘business tax reform’ that would lower the top US corporate tax rate to 28 percent, with a 25-percent rate for domestic manufacturing income. The budget also proposes to make permanent the research credit and certain other business tax provisions, including CFC look-through and Subpart F exceptions for active financing income. The budget includes a number of small business tax reform proposals, including permanent increased limits on expensing and expanded use of cash accounting.
Significant new international tax increase proposals include a one-time mandatory 14-percent tax on previously untaxed foreign income and a 19-percent minimum tax on future foreign income. The budget states that ‘transition’ revenue from the 14-percent toll tax would go primarily to fund surface transportation programs. The budget proposes roughly $1 trillion in tax increases for upper-income individuals, and also re-proposes certain other revenue raisers included in previous budgets.