The Obama administration on Wednesday proposed a tax overhaul that would lower the maximum rate companies pay, though some businesses said the effort doesn’t go far enough and Republicans called the plan disappointing, underscoring the difficult path ahead.
The Treasury Department said the plan would lower the top income-tax rate for corporations to 28% from 35%, cut the effective tax rate even further for manufacturers, and eliminate or restrict many popular deductions while making others permanent.
Democrats and Republicans both endorse changes to the current U.S. tax code, which President Barack Obama Wednesday called “outdated, unfair, and inefficient.” But the sides are at odds on details, and it’s unlikely they will strike a deal that could get through Congress in a heated election year.
Republicans were quick to criticize the administration’s 23-page tax report, with some calling it a political document rather than a blueprint for fixing the tax code.
“Unfortunately, this so-called framework is murky, ill-defined and contradictory to the goal of reducing complexity and making our tax code more efficient,” Utah Sen. Orrin Hatch, top Republican on the committee with jurisdiction over tax issues, said in a statement.