President Barack Obama’s budget proposals will include a minimum tax of 19 percent on U.S.-based companies’ future foreign earnings and a 14 percent tax on their stockpiled offshore profits, Bloomberg news said on Saturday, citing two people familiar with the budget.
The planned taxes are part of a $3.99 trillion budget plan that will be rolled out on Monday and is designed to help middle class and poorer Americans by increasing taxes on the wealthiest, Bloomberg reported.
It said the new proposals would be part of a larger effort to overhaul the U.S. tax code and lower the current corporate rate from 35 percent, though few companies pay that top rate. But Obama and the Republicans who now control Congress disagree over how much to cut that rate and over which tax breaks would have to be eliminated or shrunk to offset the lost revenue, the Bloomberg report said.
Obama wants to use new revenue to pay for infrastructure projects and these two provisions, along with the extension of certain laws that are set to expire, would yield $565 billion over 10 years, according to one of the people cited by Bloomberg in the report (http://bloom.bg/1zJb5Kw).