THE US
President Barack Obama aims to cut the country's corporate tax rate from
35 to 28 percent. At the same time he has also proposed to eliminate the
various tax deductions that companies have been presently enjoying. The
plan would result in reducing the effective tax rate for manufacturing
firms from the current 32 percent average to 25 percent according to Govt.
officials. But the proposal at the same time would increase taxes
on oil and natural gas companies U.S. companies operating overseas may
also now have to pay a minimum tax on their foreign earnings. The top U.S.
corporate rate of 35 percent is among the highest in the world, putting
American firms at an economic disadvantage. But numerous U.S. corporations,
after taking allowable deductions for business expenses, often pay at a
substantially lower rate, and occasionally, nothing.
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