White House spells out tax code simplification

WASHINGTON, July 30 (UPI) -- The White House Tuesday outlined President Obama's tax code simplification strategy that calls for lowering the corporate tax rate to 28 percent.

With Obama pushing for a simpler tax code in a speech in Chattanooga, Tenn., the White House said his plan calls for lowering corporate taxes to a "globally competitive" 28 percent from the current 35 percent, which would be a "revenue-neutral simplification" if implemented along with the closure of loopholes.

"Our current tax code is broken and too complex, with businesses that play by the rules paying a 35 percent tax rate while many corporations that can hire hundreds of lawyers pay virtually no taxes at all," the White House said.

In addition, the White House said, there would be a maximum tax of 25 percent for the manufacturing sector.

But the White House said the president would agree to a tax code simplification only if there were job-enhancing programs put into place as part of the bargain.

The White House said the middle class would benefit from job creation programs that included a "fix it first" infrastructure investment program, the creation of "45 manufacturing innovation institutes over 10 years" and investments in community college programs that train workers.

The president is also looking for indirect methods of supporting job creation, the White House said calling for an expansion of the SelectUSA program with the goal of increasing foreign investment.

The president is also sending out a challenge for the "private sector, non-profits and government" to tackle the problem of long-term unemployment.

In the fall, Obama will meet with corporate executives to seek out "best practices for training, recruiting and hiring the long-term unemployed," the White House said.