As expected, President Obama called for an overhaul of corporate taxes during his State Of The Union Address. He proposed eliminating many loopholes and deductions, in exchange for reduced corporate rates. Will this be the incentive corporations need to keep their profits in the US?
From the Associated Press:
Obama says he wants the changes to result in the same level of revenue as current corporate taxes. Obama says he would oppose changes that increase the deficit.
The president has in the past called for "revenue neutral" changes in corporate taxes. A deficit commission he appointed recommended a wholesale change in individual and corporate taxes that would lower rates but also raise additional revenue by eliminating loopholes and, thus, help reduce the deficit.
White House officials say the president doesn't want an overhaul of the corporate tax system to raise additional revenue.