Tax Break

Essential reading: Another tycoon moves to low-tax Singapore, and more

June 12, 2012

Welcome to the top tax and accounting headlines from Reuters and other sources.

* Another tycoon moves to Singapore. Sam Holmes – The Wall Street Journal. Australian coal magnate Nathan Tinkler, the resource-rich country’s wealthiest person under the age of 40, will relocate to Singapore, joining a notable list of other foreign tycoons moving to the affluent city-state. Tinkler’s spokesman would not comment on whether his client was attracted to Singapore’s more-favorable tax environment. The city-state, which boasts the highest percentage of millionaire households in the world, has a marginal individual tax rate of 20 percent for the highest income bracket, which compares with 45 percent for the top income bracket in Australia. Link

* US Senate tax chief warns of dangerous fiscal path. Kim Dixon and Kevin Drawbaugh – Reuters. The United States is on a “dangerous path” that could lead to a European-style fiscal crisis, the Senate’s top tax legislator warned on Monday, while calling for more tax revenue and ending corporate incentives to shift profits and jobs overseas. Democrat Max Baucus urged fellow lawmakers to resolve by the end of 2012 a host of “crucial spending and tax decisions” that will arise immediately after the Nov. 6 presidential and congressional elections. Link

* Revenues recover but states still tight-fisted. Lisa Lambert – Reuters. U.S. states are remaining tight-fisted over spending even as their revenues are expected to top the levels seen before the height of the recession, unnerved by the clouds over the U.S. and global economies. For the upcoming 2013 fiscal year, total U.S. state revenues will increase by $27.4 billion, or 4.1 percent, to reach $690.3 billion. General fund spending, however, will rise by only $14.6 billion, or 2.2 percent, according to a survey of governors’ budgets released on Tuesday. Link

* IMF: Japan must raise sales tax to show fiscal commitment. Stanley White and Tetsushi Kajimoto – Reuters. The International Monetary Fund urged the Japanese government on Tuesday to raise the country’s sales tax and reform its welfare system to demonstrate a commitment to fiscal reform. Prime Minister Yoshihiko Noda has staked his political life on the plan’s fate, aiming to pass the tax and social security bills during the current session that ends on June 21. Link

* Oregon to report on erroneous $2.1 million tax refund. Patrick Temple-West – Reuters. The Oregon Department of Revenue said it expects to issue a report on Tuesday, seeking to explain how the state authorized a $2.1 million tax refund to a woman who was arrested last week and charged with filing a fraudulent state tax return. Link

* Laffer and Moore: Obama’s real spending record. Arthur Laffer and Stephen Moore – The Wall Street Journal opinion. Like President Obama, President Hoover proposed massive tax increases. Unlike Obama, Hoover was successful. The highest marginal income tax rate jumped to 63 percent from 24 percent on Jan. 1, 1932. That November, Hoover lost the election to Franklin D. Roosevelt in a landslide. Link

* The fiscal legacy of George W. Bush. Bruce Bartlett – The New York Times opinion. The 2001 tax cut did nothing to stimulate the economy, yet Republicans pushed for additional tax cuts in 2002, 2003, 2004, 2006 and 2008. The economy continued to languish even as the Treasury hemorrhaged revenue, which fell to 17.5 percent of the gross domestic product in 2008 from 20.6 percent in 2000. According to the CBO, by the end of the Bush administration, legislated tax cuts reduced revenues and increased the national debt by $1.6 trillion. Slower-than-expected growth further reduced revenues by $1.4 trillion. Link

* Bernanke’s cliffhanger. The Wall Street Journal editorial. The fiscal cliff that could break the economy’s neck is the scheduled tax hikes. These include a tripling of the tax on dividends, a near 60 percent increase in the capital gains rate, a 20 percent increase in personal income-tax rates that will hit small businesses, and the repeal of tax breaks allowing businesses to write-off capital purchases. Link

* Dems grapple with endgame in Bush tax cut fight. Greg Sargent – The Washington Post opinion. Senate Democrats are reported to be divided and uncertain about how they will approach the coming standoff over the scheduled expiration of the Bush tax cuts. But a few progressive Dems seem to be quietly floating another scenario entirely: letting all the tax cuts expire, coming back and voting on recutting middle class tax rates, and challenging Republicans to vote against the Dem-proposed tax cuts. Link

Comments
One comment so far | RSS Comments RSS

I think that we should be taxed one hundred percent, no exceptions….. But the trade off has to be to impeach Zero Hussian O’Booboo……..It would be worth the price…That is assuming that means congress takes a walk off the planet…. Soros can drive the bus…

Posted by dennisc443 | Report as abusive
 

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