Straight from the Specialists
(The views expressed in this column are the author’s own and do not represent those of Reuters)
On February 22, U.S. President Barack Obama’s administration brought out a white paper on corporate tax reform which, if enacted, will make a significant difference not only to America but also to many other countries.
The white paper offers the first major tax reform since 1986 when the corporate tax rate was increased to 35 pct. This reform has two main components. First, it proposes to reduce the rate of corporate taxation to 28 pct while knocking down some of the tax breaks; second, earnings from abroad will be subjected to tax.
The underlying singular objective is job creation, a penchant for which Obama had displayed right from his campaign days four years back. Over time, he has perhaps been more convinced that U.S. companies should invest to create jobs in America.