Obama: Slash corporate tax breaks and rates
February 22nd, 2012
12:37 PM ET
2 years ago

Obama: Slash corporate tax breaks and rates

New York (CNNMoney) – After more than a year in the making, the Obama administration on Wednesday released its plan to overhaul the corporate tax code.

The main proposal would slash the corporate tax rate to 28% from 35% and pay for the reduction by eliminating "dozens" of business tax breaks. There are currently more than 130 on the books.

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Filed under: 2012 • CNNMoney.com • President Obama • Taxes
soundoff (21 Responses)
  1. GROVER NORQUIST IS A ENEMY OF THE STATE

    If republicans can't get behind this proposal, then they're just being partisan. 28% is modest. But i doubt if there is any tax reform thhat passed this year. That won't happen until after election.

    February 22, 2012 12:44 pm at 12:44 pm |
  2. Nelson Colorado Springs Co.

    Now President Obama close the off shore Corporate Headquater Loop Hold this bring unpaid taxes back form these accounts

    February 22, 2012 12:46 pm at 12:46 pm |
  3. Rudy NYC

    And who said Democrats do not want to cut Welfare and other entitlements? Cutting corporate welfare is a good thing when we cannot afford it.

    February 22, 2012 12:48 pm at 12:48 pm |
  4. gr8usa

    Let's see how the folks on the right now argue against a tax break for businesses...this should be interesting.

    February 22, 2012 12:49 pm at 12:49 pm |
  5. Fair is Fair

    A small step in the right direction. So tell us, Obama – will GE and it's rump swab CEO pay any taxes under your plan, or do they still, as parent company of your propoganda channel MSNBC, get a free pass?

    February 22, 2012 12:51 pm at 12:51 pm |
  6. Republican who supports President Obama

    I want to hear the GOP response. They will probably say it is not enough and will not say what figure they will agree to. It will be proff once again that the GOP are not willing to accept any proposal from the President.

    February 22, 2012 12:56 pm at 12:56 pm |
  7. diridi

    Well-Done, this is the only way to pull the big companies back to USA. I applaud. Restructure Tax-code. You are set, Pres. Obama. Corporations automatically come home. All these times, they cry on Corporate tax., good sign....now all the pharmacy and other electronic companies keep coming back. You see the result. Well-done. Obama2012.

    February 22, 2012 12:59 pm at 12:59 pm |
  8. Rudy NYC

    I think the minimum tax is good. If I have to pay, why shouldn't corporations have to pay it? Please, do not tell me that it hurts job creators because job creators do not create demand for jobs. Consumers, like me, create demand for jobs.

    February 22, 2012 01:07 pm at 1:07 pm |
  9. Dee

    "While the republicans are out there calling people "Heathens" and Crushing Womens Rights, "You are out there doing things for "The Common Good" of America,Mr. President! You have my family and friends "Vote"!! Obama-Biden 2012!! Clinton-Warren 2016!!

    February 22, 2012 01:22 pm at 1:22 pm |
  10. king

    Oh hell he done took another repubs talking points on taxes, the only talking point left is deregulation. Hey that wont stop the repubs though, they'll just add 1 percent truth and another 99 percent lies and spin it all together and come up another new and improve talking point. hey they've been doing it for 4 years and look what kind of result it caused with the past election.

    February 22, 2012 01:27 pm at 1:27 pm |
  11. Data Driven

    I seem to recall that this was Paul Ryan's idea, more or less. It will be interesting to see if Republicans disavow yet another of their ideas that have been appropriated by Obama, such as, for example, the health insurance mandate.

    February 22, 2012 01:32 pm at 1:32 pm |
  12. Rick McDaniel

    He is desperate to look like he is creating jobs, so now he wants to take the Republican position.

    Just a useless copycat, is all Obama is.

    February 22, 2012 01:36 pm at 1:36 pm |
  13. Anonymous

    Since this is a policy also supported by many in the GOBP, I'm sure they'll all line up to rabidly attack it and make every effort to obstruct any movement in this direction.

    February 22, 2012 01:58 pm at 1:58 pm |
  14. Chipster

    Seriously? How many corporations actually pay anywhere near the top tax rate? 28% is still higher than most of them actually pay by the time they take all their deductions and slip through all the loop holes. The better idea is stop allowing corporations and executives to profit from taking U.S. jobs out of the country!

    February 22, 2012 02:02 pm at 2:02 pm |
  15. Taran

    One check mark in his favor. But the balance book is still heavily against him for the country damaging policies his administration has implemented.

    February 22, 2012 02:14 pm at 2:14 pm |
  16. tom

    Now waiting to hear criticism from the right. I can hear it now. "it should be 27, not 28". "He should have done this 1 day prior!" "it was not on legal size paper" "the paper should be plaid".

    February 22, 2012 02:33 pm at 2:33 pm |
  17. Rudy NYC

    Chipster wrote:

    The better idea is stop allowing corporations and executives to profit from taking U.S. jobs out of the country!
    ------------–
    Exactly. If people understood the true nature of the tax incentives that would outraged that it such a policy is in place, courtesy of the GWB administration. People would also understood the true scope and depth of the hypocrisy that these so called tax/deficit hawks known as the Tea Party exhibit.

    Corporations ship job overseas because their foreign taxes on htose manufacturing plants are deductible IN FULL from their US obligations. In other words, our tax dollars are used to pay corporate foreign taxes. This is the main loop hole that is used to motivate companies to move manufacturing out of the country. Why pay taxes here when you can manufacture overseas effectively tax-free? Where is the outrage from the Tea Party, Republicans and conservatives over that?

    February 22, 2012 02:35 pm at 2:35 pm |
  18. Carl Lucas

    Obama Semantics, Cutting Business tax Rates, is like Rearranging the Tables on the Titanic, Will make NO DAMN Difference. There NEEDS to Be REAL and Fair taxing Structures in Place,! The Poor NEEDS A BREAK, Just like Regular Folks, Taxing should be on SLIDING Scale reflecting Earnings/Profit! Why is Politicians NOT up Front with their Citizenry? The Folly that Big Business will Take Business Where TAXES are Less, is Baseless. Big Business like Ordinary Folks MUST pay for the Relative Security they Receive in North America! There is Very FEW places they can do business, that protects their Security!

    February 22, 2012 02:45 pm at 2:45 pm |
  19. Taran

    Yes, let's be fair. There are 49.4% of the U.S. population that pays no taxes at all. In fact many that don't, get a "refund" though they paid in nothing. Let them pay their fair share, that would go a long way to the country breaking even.

    February 22, 2012 02:50 pm at 2:50 pm |
  20. Rudy NYC

    Taran wrote:

    ... In fact many that don't, get a "refund" though they paid in nothing. ...
    ------------
    Ahem. That policy was a carrot created by the Republican led Congress in the 1990s to encourage people on public assistance to get out and work, instead of sitting back collecting more in welfare payments compared to actually working. I think they had called it "Work For Welfare" or something like that. It was Gingrich's Contract With America.

    Without that incentive, people with a gaggle of kids could collect more in welfare than they could working for minimum wage. In fact, Rick Santorum wants to triple this credit. I assume this is his way of getting all people with kids incentive to get a job, instead of collecting additional welfare because you have kids.

    Look before you leap.

    February 22, 2012 03:03 pm at 3:03 pm |
  21. Wardo

    It's pretty straightforward – if you are for abortion and pro-choice, you are condoning killing innocent children.

    As a result, how can these individuals call themselves Christians?? One of the real dilemmas for the Dem's, as they like to consider themselves the champions of those that can't take care of themselves, yet that goes out the window when it comes to protecting an unborn child. The most defenselesss of all.

    Pure Hypocrisy.

    February 22, 2012 03:19 pm at 3:19 pm |