(MENAFN) US Treasury Secretary, Timothy Geithner, said that the government would slash the corporate tax rate to 28 percent from the current 35 percent in an attempt to stimulate economic growth and job creation in the country, reported Xinhua News.
Geithner added that the tax revamp would improve American competitiveness by simplifying the tax code and addressing deficiencies of the tax system, describing the current US business tax system as outdated, unfair and inefficient.
He also said that to pay for the reduction that would occur from tax cuts, the government would reduce dozens of tax loopholes and subsidies.
Moreover, a minimum tax would be introduced on foreign earnings of US firms, as the administration planned to support domestic investment and bring jobs back to the country.
It is worth noting that under the framework, the tax reform would be fully paid for and wouldn't widen the US deficit.