Welcome to the top tax and accounting headlines from Reuters and other sources.
* Geithner swings back at critics of tax and regulatory policy. Damian Palleta – The Wall Street Journal. Treasury Secretary Timothy Geithner sharpened his rebuke of his political and private sector critics on Wednesday, saying many “misread the underlying dynamics of the economy today.” Geithner, in remarks at the Economic Club of Chicago, called out “business lobbyists” and others and said “many have claimed that the basic foundations of American business are in crisis, critically undermined by taxes and regulation.” Link
* Christie leaning on tax subsidies in hunt for jobs. Charles Bagli – The New York Times. Since taking office in 2010, Republican Gov. Chris Christie has approved a record $1.57 billion in state tax breaks for dozens of New Jersey’s largest companies after they pledged to add jobs. Christie has emphasized that these are prudent measures intended to help heal the state’s economy, which lost more than 260,000 jobs in the recession. The companies often received the tax breaks after they threatened to move to New York or elsewhere. Link
* Brazil tightens taxes on commods companies. Luciana Otoni – Reuters. Brazil cracked down on multinational commodities firms on Wednesday with rules to block them from shifting tax liabilities to more favorable countries. The measure by Brazil’s tax authority comes a day after the government granted $5.5 billion in tax breaks aimed largely at domestic manufacturers. Under new rules, the Brazilian units of companies such as Vale, Bunge, Cargill, Louis Dreyfus, Glencore and Noble Group must value transactions with overseas units of the same company using international price benchmarks, said Sandro Serpa. Link
* Germany, Switzerland near tax plan. Andrea Thomas – The Wall Street Journal. Germany and Switzerland will sign a tax deal on Thursday that could generate billions of euros in tax revenues for Germany and end a dispute between the two neighboring countries over tax evasion and bank secrecy. The deal regulates cooperation between Swiss and German tax investigators and is expected to create additional tax revenues from assets that German citizens have stashed in secret Swiss bank accounts. Link