Obama to Propose Slashing Corporate Tax Rate to 28 Percent

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Hey Congress, chew on this.
Hey Congress, chew on this. Photo: Chris Kleponis-Pool/Getty Images

But not for nothing: Along with a 7 percent reduction from the current top corporate tax rate of 35 percent, Obama and the Treasury Department will reportedly ask Congress on Wednesday to wipe numerous loopholes and subsidies from the tax code, with the goal of boosting taxation revenue. "I think it is important that the target be some increase in tax revenue," Dean Baker, co-director of the Center for Economic and Policy Research, told Reuters. "While we are at the top in marginal tax rates ... we rank near the bottom in effective average taxation." But this Congress is particularly unproductive and is now in an election year, so the proposal is basically political posturing and not a plan not to be realized soon. So, enjoy the show.