WASHINGTON (Reuters) – A new math for tax policy is attracting fresh attention in Washington as polls suggest that Republicans could capture full control of the U.S. Congress next month.
Known as “dynamic scoring,” the approach is about how to estimate the federal budget impact of tax law changes and it has long been backed by Republicans but opposed by some Democrats.
WASHINGTON/NEW YORK (Reuters) – Tough new U.S. rules on corporate “inversions” on Tuesday sent a chill through the market for the tax-avoidance deals, both pending and potential, with share prices falling sharply in nearly a dozen companies on both sides of the Atlantic.
As investors sold stocks involved in inversions, in which U.S. companies escape high taxes at home by redomiciling abroad, analysts and tax lawyers were surveying the damage to deals currently in the works and the outlook for future transactions.
WASHINGTON (Reuters) – Moving against tax-avoidance by corporations, the Obama administration is taking several actions to curb deals known as “inversions” that allow companies to escape U.S. taxes by reincorporating abroad.
The Treasury Department on Monday announced new rules, effective immediately, that will reduce tax benefits accessible to companies that have inverted and make new inversions more difficult and less potentially rewarding.
WASHINGTON (Reuters) – More large U.S. businesses are organizing as partnerships, rather than corporations, and the tax-collecting U.S. Internal Revenue Service is not doing enough to keep an eye on them, a government watchdog said on Thursday.
Echoing concerns raised by other Washington officials about the surge, the Government Accountability Office (GAO) said more than 10,000 large businesses were set up as partnerships in 2011, three time as many as in 2002.
WASHINGTON, Sept 8 (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) – U.S. Treasury Secretary Jack Lew on Monday called for swift action to close a federal tax code “loophole” that allows businesses to reincorporate abroad to avoid U.S. corporate taxes, but offered no new ideas for how to do that.
Amid growing concern among Washington policy-makers about these transactions known as inversions, Lew said the Treasury Department “is completing an evaluation of 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) – Democratic Senate investigators criticized a watchdog for the U.S. Internal Revenue Service on Friday for “inaccurately and unfairly” damaging public confidence in the tax agency’s political impartiality.
Republican investigators disagreed, defending the job done by the Treasury Inspector General for Tax Administration (TIGTA) last year in reviewing the IRS’ handling of tax-exemption applications received from political groups.
WASHINGTON August 18 (Reuters) – Establishing a tax domicile abroad to avoid U.S. taxes is a hot strategy in corporate America, but many companies that have done such “inversion” deals have failed to produce above-average returns for investors, a Reuters analysis has found.
Looking back three decades at 52 completed transactions, the review showed 19 of the companies have subsequently outperformed the Standard & Poor’s 500 index, while 19 have underperformed. Another 10 have been bought by rivals, three have gone out of business and one has reincorporated back in the United States.
WASHINGTON (Reuters) – The U.S. government has grappled for more than 30 years with corporate deals known as inversions in which U.S. companies shift their tax domiciles abroad to avoid U.S. taxes.
Fifty-two substantial deals like this have occurred since 1983, about half of them since the 2008-2009 credit crisis, according to a Reuters analysis.
WASHINGTON, Aug 14 (Reuters) – A senior U.S. senator said on
Thursday he has written to Hospira Inc and urged the
drug and medical device maker not to move its tax domicile
abroad to save on U.S. taxes.
Citing recent reports that Hospira plans to buy the medical
nutrition unit of France’s Danone SA, Dick Durbin said
in a statement he told Chief Executive Officer Michael Ball that
Hospira should not “turn its back on American taxpayers and
consumers by taking advantage of a tax loophole called