WASHINGTON (Reuters) – Corporations should be on notice that government action is coming on “inversion” deals done by U.S. businesses that reincorporate abroad to cut their tax bills, said the top Democratic tax-writer in the House of Representatives on Friday.
Representative Sander Levin called cracking down on inversions “unavoidable.” He said he has been told recently by Treasury Secretary Jack Lew that the Obama administration will act to make the deals less lucrative, if Congress does not.
WASHINGTON (Reuters) – Conservative groups kept up the pressure on Thursday to shut down the U.S. Export-Import Bank, but the agency’s supporters and many lawmakers expect Congress to approve a deal next week to extend its charter for nine more months.
Leaders in the Republican-controlled House of Representatives said this week they would reauthorize the Ex-Im Bank before its charter expires on Sept. 30, giving it until June 2015 as part of a package to fund federal agencies.
WASHINGTON (Reuters) – A group of U.S. senators wants Burger King Worldwide (BKW.N: Quote, Profile, Research, Stock Buzz) to scrap its plans to invert, or move its tax domicile to Canada, as part of a deal to buy coffee and donut chain Tim Hortons Inc (THI.TO: Quote, Profile, Research, Stock Buzz).
Burger King announced in August plans to buy the Canadian restaurant chain for $11.5 billion. Canada has a lower corporate tax rate than the United States, and it does not require companies based there to pay extra taxes on income earned abroad, so the deal was expected to yield tax savings.
WASHINGTON (Reuters) – One of the main incentives driving a surge in U.S. corporations’ tax-driven overseas inversion deals would be pared back under a plan unveiled on Wednesday by two top Senate Democrats.
Though the plan was seen by analysts as unlikely to become law anytime soon, it draws further attention to the rising number of U.S. businesses moving abroad for tax reasons.
WASHINGTON, Sept 9 (Reuters) – Republican leaders in the
House of Representatives on Tuesday proposed extending the U.S.
Export-Import Bank’s charter through June 30 next year, a
Republican aide said on Tuesday, granting a temporary reprieve
for the export lender.
The extension was included in a proposed bill to temporarily
fund the U.S. government through Dec. 11 at current spending
levels. The measure, announced by the House Appropriations
Committee, could come up for a vote as early as Thursday.
WASHINGTON (Reuters) – Republican leaders in the House of Representatives will propose extending the U.S. Export-Import Bank’s charter through June 30 next year, a Republican aide said on Tuesday, granting a temporary reprieve for the export lender.
The extension would be added to a bill to temporarily fund the U.S. government after Sept. 30, the House Republican aide said. That could come up for a vote as early as Thursday.
WASHINGTON (Reuters) – Shares of big U.S. banks Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) and Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) dipped on Tuesday after a top Federal Reserve official’s warning that the banks could soon face tougher funding restrictions.
Fed Governor Daniel Tarullo said at a U.S. Senate Banking Committee hearing that the biggest banks will face a capital surcharge in excess of requirements agreed to by international regulators, “noticeably so for some firms.”
WASHINGTON (Reuters) – Treasury Secretary Jack Lew called on Monday for prompt action to stem the surge of U.S. businesses reincorporating abroad in “inversion” deals to avoid corporate U.S. income taxes, but offered no new ideas.
While proposals stacked up in Congress, Lew said the Treasury Department was evaluating “what we can do to make these deals less economically appealing, and we plan to make a decision in the very near future.”
WASHINGTON (Reuters) – The No. 3 U.S. Senate Democrat has circulated a draft proposal to crack down on U.S. companies that invert, or merge with foreign competitors to get lower tax rates, and it would apply to deals as far back as 1994.
The plan developed by Senator Chuck Schumer of New York would reduce the incentives for companies to invert, according to a draft document that Reuters viewed.
WASHINGTON (Reuters) – The U.S. Congress is expected to move quickly next week on a stop-gap funding measure to keep government agencies open into mid-December, but a plan to temporarily extend the U.S. Export-Import Bank’s charter has proven more elusive.
Lawmakers return from a five-week summer recess on Monday. Their most pressing issue will be an extension of funding for the federal government, which is set to run out when the fiscal year ends on Sept. 30.