The Obama administration on Wednesday proposed overhauling the U.S. corporate tax code by slashing the top rate to 28 percent from 35 percent while eliminating popular deductions that many businesses now use to reduce their taxes.
The Obama plan proposes ending tax breaks used by oil and gas companies, insurers and investment managers, among them the "carried interest" tax break that chiefly benefits private equity and other fund managers.
Chances for passage with presidential and congressional elections looming in November are slim and businesses are likely to object to losing some of their benefits.
The plan would reduce the deductibility of interest for corporations to try to reduce a bias in the tax code that favors debt financing, while also requiring companies to pay a minimum tax on overseas profits in low-tax countries.
