The Obama administration on Wednesday unveiled its plan for reforming corporate taxes designed to reduce the overall tax burden on companies while eliminating politically unpopular loopholes like the corporate jet tax break.
The plan, announced by Treasury Secretary Timothy Geithner, also would eliminate a “carried interest” loophole that allows wealthy Americans, such as former Massachusetts Gov. Mitt Romney, to take advantage of a 15 percent tax rate, far lower than many middle-class Americans can.
According to the administration, the goal of the reforms is to encourage new investment in the United States.
“The rising fortunes of emerging economies offer tremendous economic opportunities for the United States. But if we are going to be able to take advantage of those opportunities, we have to encourage companies — both American companies and foreign companies — to design and create and build things here,” Geithner said.
Geithner also said he has spoken with Senate Finance Chairman Max Baucus (D-Mont.) And House Ways and Means Chairman Dave Camp (R-Mich.) about the reforms and that they plan to begin bipartisan tax reform talks in the next few weeks.
Vice President Joe Biden waits to conduct a mock swearing-in ceremony with Sen. Brian Schatz, D-Hawaii, in the Capitol's Old Senate Chamber, December 2, 2014. Schatz was sworn in to serve the remainder of his term since he was appointed to the seat after Sen. Daniel Inouye, D-Hawaii, passed away.