Kevin's Feed
Jul 28, 2015

Enticed by highway money, U.S. Congress revisits corporate tax break

WASHINGTON (Reuters) – The U.S. Congress is setting the stage for months of debate on a tax break for overseas corporate profits, a perennial proposal made over by being linked to another issue, funding for highway construction.

The tax-break-for-road-funding package has backers but also many critics in Washington. By the end of 2015, it could provide a short-term highway funding solution and have a long-lasting impact on corporate tax policy.

Feb 12, 2015

U.S. Senate Democrat urges tax overhaul to halt inversion ‘virus’

WASHINGTON, Feb 12 (Reuters) – The Senate Finance
Committee’s top Democrat called corporate tax inversions a
“virus” on Thursday, saying they threaten to spread unless
Washington moves quickly to overhaul the U.S. tax code.

“The inversion virus may not have been quite as active in
the past few weeks,” said Senator Ron Wyden, referring to the
deals in which U.S. companies buy smaller, foreign rivals and
adopt their legal nationality for corporate tax purposes.

Feb 9, 2015

Insight – U.S. companies may not be fleeing due to high tax rate, Reuters analysis shows

WASHINGTON (Reuters) – When a series of big U.S. companies last year moved to reincorporate abroad in inversion deals, some Republican lawmakers and tax policy critics blamed the high U.S. corporate tax rate. Lowering it, they said, would keep companies from fleeing the country.

But a Reuters analysis of the taxes being paid by the six largest companies known to be doing inversions in late 2014 and early 2015 showed that, even before the deals, all were paying below the statutory U.S. federal corporate rate of 35 percent.

Feb 9, 2015

U.S. companies may not be fleeing due to high tax rate, Reuters analysis shows

WASHINGTON, Feb 9 (Reuters) – When a series of big U.S.
companies last year moved to reincorporate abroad in inversion
deals, some Republican lawmakers and tax policy critics blamed
the high U.S. corporate tax rate. Lowering it, they said, would
keep companies from fleeing the country.

But a Reuters analysis of the taxes being paid by the six
largest companies known to be doing inversions in late 2014 and
early 2015 showed that, even before the deals, all were paying
below the statutory U.S. federal corporate rate of 35 percent.

Feb 2, 2015

Obama targets foreign profits with tax proposal

WASHINGTON (Reuters) – President Barack Obama’s fiscal 2016 budget will seek new taxes on trillions of dollars in profits accumulated overseas by U.S. companies, and a new approach to taxing foreign profits in the future, but Republicans were skeptical of the plan on Sunday.

Reviving a long-running debate about corporate tax avoidance, Obama will target a loophole that lets companies pay no tax on earnings held abroad, the White House said. But his proposal was certain to encounter stiff resistance from Republicans.

Feb 1, 2015

Obama targets foreign profits with tax proposal, Republicans skeptical

WASHINGTON (Reuters) – President Barack Obama’s fiscal 2016 budget will seek new taxes on trillions of dollars in profits accumulated overseas by U.S. companies, and a new approach to taxing foreign profits in the future, but Republicans were skeptical of the plan on Sunday.

Reviving a long-running debate about corporate tax avoidance, Obama will target a loophole that lets companies pay no tax on earnings held abroad, the White House said. But his proposal was certain to encounter stiff resistance from Republicans.

Feb 1, 2015

Obama plans 19 pct tax on U.S. companies’ foreign earnings

WASHINGTON (Reuters) – President Barack Obama’s fiscal 2016 budget proposes a 19 percent tax on U.S. companies future foreign earnings and a one-time 14 percent tax on roughly $2 trillion of profits being held offshore, the White House said on Sunday.

Revenues from the one-time tax would be used to fund infrastructure projects and fill a projected shortfall in the Highway Trust Fund.

Jan 30, 2015

U.S. senators propose tax holiday for foreign profits

WASHINGTON, Jan 30 (Reuters) – Multinational corporations
would get a tax holiday on hundreds of billions of dollars in
foreign profits under a measure proposed by two U.S. senators on
Friday.

Democrat Barbara Boxer of California and Republican Rand
Paul of Kentucky called for allowing businesses to pay 6.5
percent corporate income tax on foreign profits brought into the
country from overseas, instead of the current 35 percent rate,
which they largely avoid.

Jan 18, 2015

Obama tax proposals run into Republican criticism

WASHINGTON (Reuters) – President Barack Obama’s new tax plan ran into rapid criticism from the Republicans on Sunday, underscoring the challenges facing any attempt to overhaul the U.S. tax code.

With the start of a new Congress this month under Republican control, lawmakers have been discussing tax reform. However, with Congress deeply divided on fiscal policy, Obama’s latest tax plan is likely to hit strong opposition.

Dec 31, 2014

Republicans to push ahead on new math for U.S. taxes, budget

WASHINGTON, Dec 31 (Reuters) – As Republicans assume control
of the entire U.S. Congress in the new year, they are expected
to push a controversial change to use more macroeconomic
projections in determining the impact of tax and budget
legislation on the federal deficit.

Critics say wider use of “dynamic scoring,” as the
Republican-favored approach is known, would introduce new
uncertainties into fiscal policy and degrade the value of
present analysis now done by Capitol Hill staff experts.