Obama Administration Proposes Corporate Tax Rate Cut to 28%

The Obama administration called for reducing the corporate tax rate to 28 percent from 35 percent, eliminating tax breaks and changing core features of the tax code such as interest deductibility.

The plan, which leaves many details up to Congress, would retain tax breaks for corporate research, manufacturing and renewable energy. Over the next decade, the proposal would raise $250 billion more than the current corporate tax system does, because expiring provisions would either be allowed to lapse or offset with revenue increases elsewhere.