U.S. states flirt with major tax changes
CHAPEL HILL, North Carolina (Reuters) – Hopes for overhauling the federal tax system are fading in Washington, but in some state capitals, tax reform experiments – some far-reaching – are fast taking shape.
Across the South and Midwest, Republicans have consolidated control of state legislatures and governorships, giving them the power to test long-debated tax ideas.
Virginia plan to end gas tax quickly panned
Virginia Governor Bob McDonnell, entering his last year in office, offered on Tuesday a bold plan to finance badly needed road work and transportation expansion in the state.
His plan, to end the state’s 17.5 cent per gallon gas tax and replace it with a 0.8 percent increase in the state sales tax, was quickly booed by tax experts, however.
Calendar
Some important tax and accounting dates in the week to come:
Tuesday, Jan.8
* Panel discussion of the fiscal cliff debate and what is likely to happen on taxes in 2013. 12 noon – 1:30 p.m. ET, Urban Institute. Washington.
* The American Petroleum Institute president Jack Gerard will give a speech on policy recommendations for the new Congress and administration. 12:15 p.m. ET, Andrew Mellon Auditorium. Washington.
Insight: “Cliff” deal’s retirement plan revenue boost questioned
NEW YORK (Reuters) – One modest way that U.S. lawmakers were able to offset the impact of delaying spending cuts in the deal to avert the “fiscal cliff” was through a retirement plan provision that is supposed to raise $12.2 billion over 10 years.
The only problem is that some retirement and fiscal policy experts doubt whether enough people will take advantage of the provision, which allows workers to move their money from one kind of plan to another, for the government to be able to raise that much money.
‘Cliff’ deal’s retirement plan revenue boost questioned
NEW YORK, Jan 3 (Reuters) – One modest way that U.S.
lawmakers were able to offset the impact of delaying spending
cuts in the deal to avert the “fiscal cliff” was through a
retirement plan provision that is supposed to raise $12.2
billion over 10 years.
The only problem is that some retirement and fiscal policy
experts doubt whether enough people will take advantage of the
provision, which allows workers to move their money from one
kind of plan to another, for the government to be able to raise
that much money.
Accounting for retirement benefits produces “phantom” earnings – report
The cost of pensions gets plenty of attention, both from the companies that sponsor them and their investors. Other retirement benefits, including medical costs, don’t garner the same scrutiny.
That’s because under federal law, pensions must be funded at certain minimal levels, while “other post-employment benefits” (OPEB) have no mandatory funding, no matter how under-funded they may be.
Future of state estate taxes hangs on U.S. “fiscal cliff”
(Reuters) – Falling off the “fiscal cliff” is a bad thing, right?
Not necessarily for some state governments that could begin collecting more in estate taxes on wealth left to heirs if the United States goes over the “cliff,” allowing sharp tax increases and federal spending cuts to take effect in January.
U.S. watchdog downplays deadline on China audit inspections
Dec 21 (Reuters) – A senior official at the U.S. corporate
audit industry’s watchdog is downplaying speculation in some
quarters about a showdown looming at the end of the year with
Chinese regulators over audits of U.S.-traded Chinese companies.
Lewis Ferguson, a member of the Public Company Accounting
Oversight Board, told Reuters on Thursday that no action is
imminent and dialogue with China is “continuing.”
Blue states lose: how avoiding the U.S. fiscal cliff hits some states harder than others
Democratic-voting blue states could face a greater economic fallout from any fiscal cliff resolution than their Republican red state brethren, according to a Dec. 17 white paper from municipal bond research firm eBooleant Consulting.
Entitled “The Blue State Tax Crunch,” the paper predicts a recession for these states even if a broad, country-wide recession is avoided.
Calendar
Some important tax and accounting events in the week ahead:
Monday, Dec. 17
* Joint Board meeting of the U.S. Financial Accounting Standards Board and the International Accounting Standards Board on revenue recognition. Video webcast.
* U.S. Government Accounting Standards Board chair Robert Attmore addresses New York State Society of Certified Public Accountants Public Schools Committee. Albany, NY.
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