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Feb 5, 2013

Democrats split on scope of tax code overhaul

WASHINGTON (Reuters) – The top Democrat on the Senate’s tax committee on Tuesday veered slightly from President Barack Obama’s call for quick tax code fixes to avert looming budget cuts, reflecting a split among Democrats on the scope of a possible tax code overhaul.

If Congress cannot strike a deal to avert $85 billion in broad federal spending cuts set for March 1, as appears likely, it should at least pursue a short-term fix that includes closing “special interest” tax loopholes, Obama said on Tuesday.

Feb 5, 2013

Carried interest thrust again into U.S. tax debate

WASHINGTON, Feb 5 (Reuters) – A big tax break that benefits
U.S. private equity and venture capital executives is under
threat again, and this time the chances of preserving it may
have dimmed.

President Barack Obama said at a news conference on Tuesday
that he will pursue a short list of tax loophole closures to try
and avert looming budget cuts. Obma’s press secretary singled
out the tax break known as “carried interest.”

Feb 5, 2013

Analysis: Carried interest thrust again into tax debate

WASHINGTON (Reuters) – A big tax break used by U.S. private equity and venture capital executives is under threat again, and this time their chances of preserving it may have dimmed.

President Barack Obama said at a news conference on Tuesday that he will pursue a short list of tax loophole closures to try to avert looming budget cuts. Then his press secretary singled out the tax break known as “carried interest.”

Jan 31, 2013

Obama might back territorial tax system: business chief

WASHINGTON (Reuters) – The chief of a group of more than 200 CEOs said on Thursday that President Barack Obama had told the business community last month he might back a territorial tax system, which could exempt offshore corporate profits from U.S. taxation.

Corporate America is pushing for the United States to move to such a regime, which they say would make businesses more competitive. The United States currently taxes corporate profits earned abroad only when they are brought into the country.

Jan 30, 2013

Corporations fear big tax hikes in White House budget

WASHINGTON (Reuters) – Corporations fear they will be the main course on a menu calling for hundreds of billions of dollars in new tax revenue that President Barack Obama is expected to seek in his annual budget proposal, expected within weeks.

Fresh off a political win that raised tax rates on the affluent and averted the so-called “fiscal cliff,” Obama is not likely to back away from past proposals he has sought to close tax loopholes and raise taxes on many big companies, said former advisers to the president.

Jan 30, 2013

U.S. corporations fear big tax hikes in White House budget

WASHINGTON, Jan 30 (Reuters) – U.S. corporations fear they
will be the main course on a menu calling for hundreds of
billions of dollars in new tax revenue that President Barack
Obama is expected to seek in his annual budget proposal,
expected within weeks.

Fresh off a political win that raised tax rates on the
affluent and averted the so-called “fiscal cliff,” Obama is not
likely to back away from past proposals he has sought to close
tax loopholes and raise taxes on many big companies, said former
advisers to the president.

Jan 29, 2013

Senate crusader seeks allies in war against corporate tax loopholes

WASHINGTON (Reuters) – Senator Carl Levin for years tried to close U.S. corporate tax loopholes but failed to persuade many fellow Democrats. With an ax now looming over all federal spending, the veteran Michigan lawmaker hopes to gain some converts.

Levin’s committee on investigations has long used its subpoena power to produce reports on corporate tax avoidance and wrongdoing. His panel, which has oversight over government operations, has no power to enact tax law, and neither tax-writers nor Senate leadership have taken up his cause.

Jan 29, 2013

Use of tax havens by U.S. global companies on the rise: report

WASHINGTON (Reuters) – U.S.-based global companies are increasingly shifting profits into tax havens like Bermuda and Switzerland, a government report said, a finding likely to fuel debate over the taxes corporations pay and their flexibility in locating profits.

The Congressional Research Service analyzed profit data from multinational companies and compared reported profits and other business activity in lower-tax jurisdictions versus higher-tax countries like the United Kingdom and Canada.

Jan 24, 2013

US Congress tax writer weighs changes for derivatives

WASHINGTON, Jan 24 (Reuters) – The Republican head of the
U.S. House of Representatives’ tax-writing panel unveiled on
Thursday options to revamp the tax treatment of derivatives and
other financial instruments amid criticism the current law
permits the system to be gamed.

The discussion draft comes from House Ways and Means
Committee Chairman Dave Camp, who has been exploring for more
than a year a tax code overhaul – a politically daunting project
made more so by deep fiscal policy divisions in Congress.

Jan 24, 2013

U.S. Congress tax writer offers ideas on derivative tax changes

WASHINGTON, Jan 24 (Reuters) – The Republican head of the
House of Representatives’ tax-writing committee on Thursday
unveiled options to revamp tax treatment of derivatives and
other financial instruments amid criticism the current law
permits gaming the system for tax advantages.

The discussion draft comes from House Ways and Means
Committee Chairman Dave Camp, who has been exploring for more
than a year a thorough rewrite of the tax code – a politically
daunting project made even more so by this Congress’ deep
divisions.