Obama to propose tax cuts to generate transportation funds
President Barack Obama will propose today a bipartisan effort to cut the U.S. corporate tax rate and use a portion of the generated revenue to fund infrastructure projects, according to a report from Reuters.
Obama will propose the plan, which administration officials are referring to as a “grand bargain,” during a speech at an Amazon.com Inc facility in Chattanooga, Tennessee.
The bargain includes cutting the 35-percent corporate tax rate down to 28 percent, giving manufacturers a 25-percent preferred rate, and adding a minimum tax on foreign earnings.
The revenue generated by the tax overhaul would be used in part to fund infrastructure projects. Other portions of the money would go to improving education at community colleges and to promoting manufacturing.
The proposal would generate a one-time source of revenue, though officials have not said how much.