U.S. Congress tax panels welcome fresh faces
WASHINGTON (Reuters) – The rosters of the powerful, tax-writing panels of the U.S. Congress were nearly filled out on Thursday, with three prominent Republicans named to the Senate Finance Committee.
At a time when tax-and-spending issues are at center stage, Republican Senators Pat Toomey of Pennsylvania, Johnny Isakson of Georgia and Rob Portman of Ohio are joining the finance panel. It is chaired by Montana Democrat Max Baucus.
Essential reading: Cliff fix hits small business, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Cliff fix hits small business. Emily Maltby and Angus Loten – The Wall Street Journal. The fiscal-cliff deal didn’t change the corporate tax rate, which is no more than 35 percent. But many small S-Corp businesses will see a tax increase to 39.6 percent. Link
* Small-business tax incentives survive the deal. Robb Mandelbaum – The New York Times. The bill also renews dozens of other income-tax provisions for individuals and businesses through a series of provisions that the legislating class calls “extenders.” And though advocates for small businesses were concerned that legislators might overlook their interests in the high-pressure negotiations, it turns out that their pessimism was unfounded. Link
Essential reading: Cliff bill means some pay more taxes, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Analysis: 77 percent of households to see tax increase. John McKinnon – The Wall Street Journal. The fiscal cliff bill’s impact would be far-reaching for American taxpayers, and particularly painful for very high-income households, according to a new analysis. About 77 percent of American households would see a tax increase compared to their 2012 tax levels, according to the analysis by the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute. Link
* Amid pressure, House passes fiscal deal. Jennifer Steinhauer – The New York Times. Ending a climactic fiscal showdown in the final hours of the 112th Congress, the House late Tuesday passed and sent to President Obama legislation to avert big income tax increases on most Americans and prevent large cuts in spending for the Pentagon and other government programs. Link
“Fiscal cliff” creates waiting game for payrolls firms
WASHINGTON/NEW YORK (Reuters) – At payroll processing businesses across the United States, the “fiscal cliff” stalemate in Washington means uncertainty over tax-withholding tables just days before the start of 2013.
The U.S. Internal Revenue Service still has not issued the tables for next year that show how much money employers should hold back from workers’ paychecks to cover federal income taxes.
US ‘fiscal cliff’ creates waiting game for payrolls firms
WASHINGTON/NEW YORK, Dec 21 (Reuters) – At payroll
processing businesses across the United States, the “fiscal
cliff” stalemate in Washington means uncertainty over
tax-withholding tables just days before the start of 2013.
The U.S. Internal Revenue Service still has not issued the
tables for next year that show how much money employers should
hold back from workers’ paychecks to cover federal income taxes.
Essential reading: Boehner’s budget ‘Plan B’ collapses, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Boehner’s budget ‘Plan B’ collapses. Janet Hook – The Wall Street Journal. House Speaker John Boehner, facing a rebellion in his party’s conservative ranks, abandoned his own plan to avert tax increases for most Americans Thursday night, throwing Washington’s high-stakes budget negotiations into disarray and bringing the prospect of tumbling over the fiscal cliff into sudden focus. Link
* Threat of tax changes rattles muni market. Kelly Nolan and Mike Cherney – The Wall Street Journal. Many muni investors are worried that budget negotiations in Washington could result in new taxes on interest they receive from municipal bonds. Link
Essential reading: Tax impact for small business hard to gauge, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Tax impact for small business hard to gauge. John McKinnon – The Wall Street Journal. The latest budget offers exchanged between the White House and Republican leaders would raise tax rates on a tiny fraction of small-business owners, but would still affect a sizeable portion of business activity, studies show. Link
* Boehner seeks support for tax increase on the wealthiest. Lisa Mascaro – The Los Angeles Times. As President Obama and House Speaker John A. Boehner took turns blaming each other for the sudden lull in the budget talks, the action continued off-camera Wednesday as the Ohio Republican focused on building support from his conservative majority to increase tax rates on the wealthy. Link
Exclusive: U.S. Treasury to miss deadline on tax crackdown – sources
WASHINGTON (Reuters) – The Treasury Department will miss a year-end deadline to publish final rules for a new global tax enforcement regime targeting the offshore assets of U.S. taxpayers, sources familiar with the timing said on Wednesday.
The rules represent one of the last implementation steps for the U.S. Foreign Account Tax Compliance Act, or FATCA, which is scheduled to take effect in 2014.
U.S. Treasury to miss deadline on tax crackdown-sources
WASHINGTON, Dec 19 (Reuters) – The Treasury Department will
miss a year-end deadline to publish final rules for a new global
tax enforcement regime targeting the offshore assets of U.S.
taxpayers, sources familiar with the timing said on Wednesday.
The rules represent one of the last implementation steps for
the U.S. Foreign Account Tax Compliance Act, or FATCA, which is
scheduled to take effect in 2014.
Essential reading: Boehner’s backup tax plan shakes up ‘fiscal cliff’ negotiations, and more
Welcome to the top tax and accounting headlines from Reuters and other sources.
* Boehner’s backup tax plan shakes up ‘fiscal cliff’ negotiations. Paul Kane and Lori Montgomery – The Washington Post. House Speaker John A. Boehner veered off the bipartisan course he had been charting toward a broad tax-and-entitlement deal with President Obama and instead Tuesday pushed a GOP package to extend tax cuts for income up to $1 million. Link
* Rubio responds to Plan B: Raising taxes not the right way. Natalie Jennings – The Washington Post. Senator Marco Rubio joined other Republicans in offering a tempered response to House Speaker John Boehner’s proposed “Plan B” legislation to avoid the “fiscal cliff.” “I continue to know that raising taxes on anybody is not a good way to generate economic growth,” Rubio said. Link
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