WASHINGTON -?The Obama administration plans to cut the corporate tax rate to 28 percent, and pay for the deduction by eliminating dozens of tax loopholes and subsidies, said US Treasury Secretary Timothy Geithner on Wednesday. ?

"Our business tax system today is bad for economic growth and job creation in the United States," Geithner said, as he outlined at the US Treasury Department the President's framework for tax revamp, which aimed at enhancing American competitiveness by simplifying the tax code and addressing deficiencies of the tax system.

The Obama administration proposes to lower the corporate tax rate from the current top rate of 35 percent to 28 percent and give incentives to manufacturers by reducing their effective rate to no more than 25 percent.

A minimum tax would be introduced on foreign earnings of US companies, as Obama vowed many times to encourage domestic investment and bring jobs back to the United States.

The tax reforms would also reduce the tax burden on small business.

"The President's proposal is designed to start the process of fundamental tax reform. This process will take time," Geithner said. "A long-term growth strategy for the United States requires tax reform," he noted.