Senior administration officials said that tomorrow the Obama administration will put forth its proposal for corporate tax reform.
The announcement will come from the Treasury Department.
When pressed for details, administration officials pointed reporters to the President Obama’s comments about tax reform during the State of the Union address.
The president in his speech last month decried how “right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it. So let’s change it.”
His basic three rules were, in his words:
1. “First, if you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it. That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home.
2. “Second, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here in America.
3. “Third, if you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, we should double the tax deduction you get for making your products here. And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers.”
-Jake Tapper and Mary Bruce