WASHINGTON (Reuters) – The United States and Ireland have agreed to share information about wealthy citizens’ financial accounts in a pact intended to combat tax evasion, another in a series of bilateral deals announced in recent weeks by the U.S. Treasury Department.
The deals are part of the implementation of the U.S. Foreign Account Tax Compliance Act, or FATCA, which takes effect in 2014.
WASHINGTON (Reuters) – The top U.S. tax collector warned on Thursday of a delayed start to 2013′s tax season if Congress fails to reset the alternative minimum tax (AMT) on high-income taxpayers so that it does not sweep in millions of middle-income people.
Without another adjustment by lawmakers soon to the AMT, “many of us will see a delayed filing season,” said Steven Miller, named just last month as Internal Revenue Service acting commissioner.
Essential reading: Some in GOP urge lawmakers to back tax hikes for changes in safety-net programs, and more
* Some in GOP urge lawmakers to back tax hikes for changes in safety-net programs. Lori Montgomery and Rosalind Helderman – The Washington Post. A growing chorus of Republicans is urging House leaders to abandon their staunch opposition to higher tax rates for the wealthy with the aim of clearing the way for a broad deal that would also rein in the cost of federal health and retirement programs. Link
* Plan to limit tax breaks gets a push from Boehner. John McKinnon – The Wall Street Journal. A cap on tax breaks designed by a former Reagan adviser is drawing attention after House Speaker John Boehner floated it as an option this week. The White House and Republican leaders have proposed limiting tax breaks to raise tax revenue under a long-term deficit-reduction deal. GOP leaders want to limit deductions instead of raising individual income-tax rates. President Barack Obama wants to do both. Link
WASHINGTON (Reuters) – Republicans may have some leverage in their fiscal cliffhanger with President Barack Obama: the threat of forcing a disproportionate number of Democrats to pay the so-called alternative minimum tax for the first time.
Under U.S. law, taxpayers each year must pay the greater of regular federal income tax and the AMT. The latter requires taxpayers to give up certain tax breaks, typically exemptions and deductions for state and local taxes and medical costs.
* Top U.S. firms are cash-rich abroad, cash-poor at home. Kate Linebaugh – The Wall Street Journal. Emerson Electric Co. has $2 billion of cash in the bank. But this year it had to borrow money in the U.S. to help buy back shares, distribute dividends and even pay its taxes. As a result, Emerson says, it brings its foreign cash holdings back to the U.S. only if that can be “accomplished tax efficiently.” Link
* GOP makes counteroffer in cliff talks. Janet Hook and Carol Lee – The Wall Street Journal. House Republicans on Monday made a fresh deficit-reduction proposal to the White House that calls for $800 billion in increased tax revenue, half of what President Barack Obama has proposed. Link
WASHINGTON (Reuters) – The long, bumpy road to America’s “fiscal cliff” has been travelled over many years by Congress and a series of U.S. presidents, including Barack Obama.
Some of the steps along the way had good intentions. Some had no intention other than to avoid hard decisions.
WASHINGTON, Dec 3 (Reuters) – The long, bumpy road to
America’s “fiscal cliff” has been traveled over many years by
Congress and a series of U.S. presidents, including Barack
Some of the steps along the way had good intentions. Some
had no intention other than to avoid hard decisions.
* As companies seek tax deals, governments pay high price. Louise Story – The New York Times. A Times investigation has examined and tallied thousands of local tax incentives granted nationwide and has found that states, counties and cities are giving up more than $80 billion each year to companies. Link
* Companies quietly push for tax break on foreign profits in ‘fiscal cliff’ debate. Jia Lynn Yang and Suzy Khimm – The Washington Post. Amid the tumult over looming tax hikes and spending cuts, a massive change to the corporate tax code is quietly gathering steam. Link
* Complaints aside, most face lower tax burden than in 1980. Binyamin Applebaum and Robert Gebeloff – The New York Times. Most Americans in 2010 paid far less in total taxes — federal, state and local — than they would have paid 30 years ago. The combination of all income taxes, sales taxes and property taxes took a smaller share of their income than it took from households with the same inflation-adjusted income in 1980. Link
* Obama’s cliff offer spurned. Janet Hook, Damian Paletta and Carol Lee – The Wall Street Journal. President Barack Obama made an opening bid in budget talks with Republicans that calls for a $1.6 trillion tax increase, $50 billion in infrastructure spending in 2013 and new power to raise the federal debt limit, a provocative set of demands that Republicans said represented a step backward in efforts to avoid looming tax increases and spending cuts. Link