President Obama will unveil details of his plan for a massive overhaul of the corporate tax code today, including cutting the top rate from 35% down to 28%, an administration official tells the New York Times. Manufacturers will see their effective maximum rate cut to 25%, and a minimum tax will be slapped on multinationals' foreign earnings to discourage them from shifting profits—or jobs—overseas, officials say. Treasury Secretary Tim Geithner says dozens of loopholes will be closed to ensure that the changes don't increase the deficit.
Both parties agree that changes to the corporate tax code are long overdue, but with Republicans seeking deeper tax cuts and a lobbying frenzy set to ensue, few expect Congress to pass the overhaul this year. "Even if Geithner floats something and members of both parties say they're interested, I simply cannot see a reform bill passing before the election," an analyst tells Reuters. "Something this huge and complex will require a thorough vetting, and that could take a year—or much longer." (Read more corporate tax stories.)