WASHINGTON -– President Barack Obama will offer a new proposal Tuesday that would cut corporate taxes while investing in programs that could put more Americans in well paying, full-time jobs, the White House said.
The so-called “grand bargain” is being made in an attempt to break partisan gridlock currently plaguing attempts to pass deficit-reducing budget plans, though congressional Republicans signaled on Tuesday they were unlikely to back the plan, which the president will formally announce at an Amazon.com distribution center in Tennessee.
“Today what he is saying is that he would be willing to go forward with corporate tax reform if it is part of a larger package that includes critical investments in things like infrastructure, manufacturing and innovation hubs and community college training to help close existing and future skill gaps,” Gene Sperling, the director of the National Economic Council, told reporters on a conference call Tuesday.
In the past, both Obama and Republicans have insisted that corporate tax reform be passed alongside reform for individual earners. Republicans argue that many small business owners file taxes as individuals, and would only benefit from an overhaul of the entire tax code.
The president’s plan would propose slashing the corporate tax rate to 28% from 35% while making the filing process simpler and ramping up incentives for small businesses to hire workers.
The plan would also put the tax rate on manufacturers at 25% and remove current tax incentives to send jobs overseas.
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