TO tackle high unemployment rate in the US economy, the Obama Administration wants the US companies to bring back their foreign profits back home and enhance production capacity locally and also halt outsourcing local jobs. In return, the US companies have been promised lower corporate tax rate. Only on Monday President Obama hinted at Economic Recovery Advisory Board meeting that he would be keen to find ways to lower the corporate tax rate but that the overall impact of tax reforms he wished should be 'revenue neutral'.

What makes the signal confusing is the latest statement of one of one of his tax advisors who is reported to have said that the reduction in corporate tax rate was not likely soon. Deputy Asst Secretary for International Tax at the US Treasury Department Stephen Shay is reported to have defended the administration's proposals to tighten corporate tax rules and hoped that any real action on fiscal front may be pushed next year.