The Obama Administration today released a 25-page "framework for business tax reform" that calls for a 28-percent top corporate income tax rate. The framework proposes a tax rate of no more than 25 percent for certain domestic manufacturers and a permanent research credit. The framework also calls for a "minimum tax on overseas profits."
The Administration's framework suggests that efforts should be made to establish greater parity between C corporations and large pass-through businesses. At the same time, the framework outlines several small business tax relief provisions.
The Administration states that President Obama's goal is to have a corporate tax rate more in line with major U.S. trading partners. The Administration states that for OECD countries excluding the United States, the GDP-weighted average corporate tax rate is 27.8 percent, and the average corporate tax rate is 25.1 percent.
The Administration's business tax reform framework does not include any proposals for comprehensive individual tax reform.