Treasury Secretary Tim Geithner on Wednesday unveiled the Obama administration's tax reform plan which calls for lowering the corporate rate from 35 to 28 percent while closing loopholes elsewhere.
Geithner said the current code is bad for business, claiming the overhaul would make the system more globally competitive.
Officials have said the reforms would actually raise money, despite the decrease in the rate, by making changes to provisions which Geithner called "fundamentally unfair."
Manufacturers would receive incentives so that their effective tax rate would be 25 percent. But corporations with overseas operations would also face a minimum tax on their foreign earnings, while taxes on oil and gas companies would reportedly see their taxes go up while losing many large deductions and subsidies.