President pushes for 28 percent corporate tax rate

In a move that would have a significant impact on many day trading companies across the country, the Obama administration has announced that it would look to reduce the top corporate tax rate to 28 percent.

There has been a great deal of discussion about the current tax structure for U.S. companies, and dropping the maximum rate from 35 to 28 percent would be a significant step for many businesses. The administration says it will make up for the tax reduction by removing several loopholes in the current code. However, those changes have yet to be detailed.

The changes echo statements made by the chief executive during his recent State of the Union speech, in which he called for incentives to be given to manufacturing companies.

Treasury Secretary Timothy Geithner said the proposal would "help level the playing field for businesses and allow the government to collect needed revenue while promoting economic growth" during a committee meeting last week.

Some analysts highlighted the political angle of the announcement, as candidate Mitt Romney has also called for a restructuring of the corporate tax code.

"Everyone agrees on the basic principle of lowering rates in exchange for eliminating loopholes," Dean Baker, co-director of the Center for Economic and Policy Research, told Reuters.

While the change would not have a significant impact on day traders incorporated as a limited liability company, or LLC, the other changes being introduced into the corporate tax code may create additional hesitancy for business owners.