President Barack Obama will propose an overhaul of the U.S. corporate tax system in February, an administration official said.
The changes will be released about the same time as the administration’s fiscal 2013 budget plan, which is scheduled to be sent to Congress on Feb. 13, according to the official who spoke today on condition of anonymity because the tax proposal hasn’t been announced. The administration official didn’t provide details of the plan.
Obama has said the corporate tax rate should be lowered from the current maximum of 35 percent in a way that doesn’t add to the budget deficit. A corporate tax overhaul plan may encounter opposition in Congress, where Republicans have said a rewrite of corporate tax rules should be paired with an overhaul of the tax system for individuals.
House Ways and Means Committee Chairman Dave Camp, a Michigan Republican, released the first part of his corporate tax overhaul in October with a proposal that would exempt 95 percent of profits earned offshore from taxation in the U.S.
Obama is moving in the opposite direction. In his State of the Union address yesterday, the president pressed Congress to impose a minimum tax on overseas profits.
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