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Oct 21, 2011

Analysis: Tax reform impossible? Reagan did it 25 years ago

WASHINGTON (Reuters) – Tax reform can happen in the United States. President Ronald Reagan and a divided Congress defiantly proved it 25 years ago this Saturday.

On both sides of the acrimonious tax debate, no event is held in such awe today as the historical moment when Reagan signed tax reform into law on October 22, 1986.

Oct 20, 2011

IRS disputes report on education tax credit errors

WASHINGTON (Reuters) – The U.S. Internal Revenue Service rejected a watchdog report released on Thursday that said the tax-collecting agency made millions of errors in handling education tax credits.

In a controversy involving a hallmark Obama administration economic stimulus measure, the Treasury Inspector General for Tax Administration said as many as 2.1 million taxpayers may have received $3.2 billion in erroneous education credits.

Oct 15, 2011

Anti-tax crusader questions Cain’s “999” plan

WASHINGTON (Reuters) – U.S. anti-tax activist Grover Norquist questioned Republican presidential contender Herman Cain’s “999” tax reform plan on Friday, saying it opened the door to future tax increases.

For Norquist — founder and president of Americans for Tax Reform, a powerful anti-tax lobbying group — that is a future not to be tolerated.

Oct 11, 2011

Foreign profit tax break in ’04 called costly flop

WASHINGTON, Oct 11 (Reuters) – Congress should reject
another big tax break for overseas corporate profits because
the last one in 2004-2005 was a costly failure, U.S.
congressional investigators said in a report that immediately
drew fire on Tuesday from an army of business lobbyists.

The Senate Permanent Subcommittee on Investigations’ report
found that the repatriation tax holiday six years ago cost the
U.S. Treasury $3.3 billion in lost revenue and “produced no
appreciable increase in U.S. jobs or domestic investment.”

Oct 11, 2011

Foreign profit tax break was costly bomb: report

WASHINGTON (Reuters) – Congress should not endorse another big tax break for overseas corporate profits because the last one in 2004-2005 was a costly failure, said U.S. congressional investigators in a report released on Monday.

With an army of lobbyists pushing on Capitol Hill for a repeat of the Bush administration’s 2004-2005 program, the head of the Senate Permanent Subcommittee on Investigations urged lawmakers to reject another corporate give-away.

Oct 6, 2011

Fitch slams proposed U.S. foreign profit tax break

WASHINGTON, Oct 6 (Reuters) – Giving U.S. corporations a
tax break on their overseas profits likely would not boost the
economy or jobs, said credit rating agency Fitch Inc on
Thursday after two senators unveiled a tax “holiday” bill.

The Fitch statement echoed two other studies released on
Tuesday that reached the same conclusion — a stark contrast
with the picture painted by Republican Senator John McCain of
the legislation he introduced with Democrat Kay Hagan.

Oct 6, 2011

Foreign profits tax break gets boost in Senate

WASHINGTON (Reuters) – Corporations seeking a tax break on overseas profits scored a win on Thursday in the U.S. Senate with the introduction of a bill offering two possible reduced tax rates for repatriating earnings from abroad.

Senators Kay Hagan and John McCain unveiled bipartisan legislation that would let multinationals bring foreign profits into the country at an 8.75 percent tax rate or, if they boost hiring, at 5.25 percent. The statutory rate is 35 percent.

Oct 4, 2011

Twin rebukes jolt US business tax holiday campaign

WASHINGTON, Oct 4 (Reuters) – A lobbying push in the U.S.
Congress to give major corporations a tax break on their
overseas profits suffered a setback on Tuesday when influential
left- and right-wing think tanks both issued reports rejecting

The left-leaning Institute for Policy Studies said 10 big
companies, including banking giants Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) and
Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), laid off workers after enjoying a
similar foreign profits tax break in 2004-2005.

Sep 21, 2011

Senator Wyden: Repeal foreign profit tax break

WASHINGTON (Reuters) – The U.S. tax code may be headed for some major renovation, and Senator Ron Wyden, a rangy Oregon Democrat, has come up with one of Congress’ most complete blueprints.

Among his recommendations are slashing the corporate income tax rate, repealing a law that lets companies put off paying taxes on overseas income, and allowing a tax holiday for repatriation of foreign profits, he said in an interview.

Sep 19, 2011

Analysis – Obama, GOP shift tax, budget fight into 2012

WASHINGTON (Reuters) – President Barack Obama and Republicans in Congress are digging in to fight the 2012 U.S. election campaign over the budget and taxes, leaving a congressional “super committee” in political no man’s land.

On one side is Obama vowing to defend social programs and proposing new taxes on the rich; on the other side are the Republicans opposing any new taxes and demanding deep social program cuts. What’s a super committee to do?