The White House's proposed mandatory taxes on US multinationals who stockpile profits in countries like Ireland are set to be rejected by the US Congress.
The president's scheme would have taxed US companies' past-profits held abroad by 14 percent - and future earnings by 19 percent. The current rate of corporation tax in the United States is 35 percent.
This tax structure is likely to be rejected by the Republican-led Congress. The party previously said no to a softer 8.75 percent mandatory charge on profits made by US corporations in other countries - that plan had been put forward by a Republican lawmaker.
The White House estimates that US companies have profits of $2.1tn parked overseas - the Obama administration hoped to raise $270bn taxing these earnings.
Research carried out by Audit Analytics in 2014 reported that profits being held abroad by US firms increased by 93 percent between 2008 and 2013.
That study found that General Electric was the company with the highest foreign profits, amounting to $110bn.
It was followed by Microsoft, Pfizer, Merck, and tech-giants Apple - all four of these companies have significant Irish operations.
These reforms were part of a €4tn budget plan that was submitted by the US president.
In his weekly video statement he said that he hoped that the budget would employ the 'middle class economics' that he outlined in his recent State of the Union address.
He says that he wants to "get rid of special interest tax-loopholes in US tax-codes," and to use the money raised to, "cut taxes for middle-class families", and to, "reward businesses that invest in America."
Mr Obama planned to use the revenue raised by the one-off 14 percent tax to help to fund a $478bn public-works programme for transport upgrades.
The dismissal of the tax is part of the Republican-controlled Congress's broader rejection of the Democrats' plans to increase taxes paid by corporations and wealthy individuals.
Speaking to NBC's Meet the Press, former-Republican vice president candidate, Paul Ryan criticised the president's proposals:
"What I think the president is trying to do here is to, again, exploit envy economics," Mr Ryan said, "This top-down redistribution doesn't work."
He added that he still hopes that Republicans and Democrats will “find common ground on certain aspects of tax reform."
