The president will likely propose lowering the rate to closer reflect the average of peer nations, the sources said.
Last year Treasury Secretary Timothy Geithner suggested that the U.S move to a rate more comparable to its major trading partners in the high 20-percent range.
In January in his State of the Union address Obama outlined tax measures that included closing tax loopholes for companies that move facilities and jobs overseas.
“We will talk more before the end of the month on what corporate tax reform would look like,” the official said on Friday, confirming that it would include a call for “lower rates.”
While he spent a big part of his January speech to Congress criticizing businesses for moving jobs overseas, Obama said that “companies that choose to stay in America get hit with one of the highest tax rates in the world.”
Only Japan has a steeper corporate tax rate than the United States among industrialized countries, though other countries make up the revenue with a value-added tax which the U.S. does not have.
“I think what he will end up doing is saying, ‘For years folks have been asking for a lower corporate rate, and here it is – what do you think?,’” said Jared Bernstein, a former economic advisor to Vice President Joe Biden.
According to a former official the Treasury Department was set to release plans to revamp corporate taxes last year, but decided not to after business opposition.
Republican Rep. Dave Camp, the chairman of the U.S. House of Representatives’ tax-law writing Ways and Means committee, has set a goal of trimming the top 35 percent corporate rate to 25 percent.
Gene Sperling, director of Obama’s National Economic Council, has told reporters that the president will be laying out “principles” for corporate tax reform close to the budget release.
Obama’s corporate plan will also include a new minimum tax on foreign profits earned in low tax countries.