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Jul 20, 2011

Left warns, CEOs laud Gang of Six on overseas tax

WASHINGTON (Reuters) – Left-wing activists and politicians on Wednesday sharply criticized a plan to end U.S. taxation of most corporate offshore profits as endorsed by the Senate’s so-called “Gang of Six.”

In backing the idea of a territorial tax system, a deficit-reduction plan from the Gang of Six would hand multinational corporations a victory in their fight for lower and simpler taxes on profits they post outside the country.

Jul 15, 2011

Senate bill would kill stock option tax break

WASHINGTON (Reuters) – A tax code loophole that gives corporations large deductions on executive stock options would be closed under legislation unveiled on Friday.

As Congress and the White House struggled with budget issues, Democratic Senator Carl Levin offered the measure, calling it a promising revenue-raiser that would discontinue “a taxpayer subsidy for the pay of corporate executives.”

Jul 14, 2011

IRS allows more time on new US anti-tax evasion law

WASHINGTON, July 14 (Reuters) – Foreign financial
institutions will get another six months to start complying
with a new law to prevent offshore tax evasion by Americans
under a phased-in compliance schedule released on Thursday.

The Internal Revenue Service said it would give the
institutions until June 30, 2013, to reach agreements with the
agency on cooperation. These agreements previously had been
expected to be concluded by the end of 2012.

Jul 13, 2011

Economists warn of peril on US debt ceiling inaction

WASHINGTON, July 13 (Reuters) – No one knows exactly what
would happen in a U.S. government debt default, but economists
agreed on Wednesday that it would be best not to find out.

“You cannot play games with something this serious,” Simon
Johnson, former chief economist of the International Monetary
Fund, said at a congressional hearing.

Jul 12, 2011

U.S. Senate bill targets offshore tax “trickery”

WASHINGTON, July 12 (Reuters) – U.S. multinational
corporations would have to report financial results on a
country-by-country basis, potentially revealing much about
their offshore tax and accounting practices, under legislation
introduced in the Senate on Tuesday.

Saying that offshore tax abuses cost the government $100
billion a year in lost revenue, Democratic Senator Carl Levin
said his bill would additionally close a loophole that allows
credit default swap payments to escape taxation if sent from
the United States to persons offshore.

Jul 12, 2011

Business seen vulnerable in eventual U.S. tax revamp

WASHINGTON (Reuters) – Tax reform could spell the demise of corporate tax breaks such as the domestic production credit, but don’t hold your breath waiting for it, says Scott Hodge, a 20-year veteran of the Washington tax wars.

Comprehensive tax reform may not come until 2013 and when it does, the handful of corporate tax breaks to be curbed could include the credit which rewards companies for making things in the United States rather than abroad.

Jul 8, 2011

U.S. debt talks producing only tax symbolism so far

WASHINGTON (Reuters) – Symbolic gestures and possible agreements in principle, but not substantive reform, are likely to be the main tax policy result of urgent talks about raising the U.S. debt ceiling.

As President Barack Obama and congressional leaders met on Thursday, there was talk of ending ethanol subsidies and tax loopholes for corporate jets, private equity financiers and Big Oil.

Jul 7, 2011

Analysis: Debt talks producing only tax symbolism so far

WASHINGTON (Reuters) – Symbolic gestures and possible agreements in principle, but not substantive reform, are likely to be the main tax policy result of urgent talks about raising the U.S. debt ceiling.

As President Barack Obama and congressional leaders met on Thursday, there was talk of ending ethanol subsidies and tax loopholes for corporate jets, private equity financiers and Big Oil.

Jul 6, 2011

Scenarios: Debt talks put pressure on corporate tax breaks

WASHINGTON (Reuters) – Corporate tax breaks — from offshore shelters to private jets — are a key stumbling block in the U.S. debt ceiling debate, with talks set for Thursday between President Barack Obama and congressional leaders.

The tax code is riddled with deductions, exemptions and other provisions to support corporations. Not since 1986 under President Ronald Reagan has the code been fully overhauled.

Jul 6, 2011

Debt talks put pressure on US corporate tax breaks

WASHINGTON, July 6 (Reuters) – Corporate tax breaks — from
offshore shelters to private jets — are a key stumbling block
in the U.S. debt ceiling debate, with talks set for Thursday
between President Barack Obama and congressional leaders.

The tax code is riddled with deductions, exemptions and
other provisions to support corporations. Not since 1986 under
President Ronald Reagan has the code been fully overhauled.