Tax Break

Essential reading: Obama fills in blanks of Romney’s plans, and GOP sees falsehoods, and more

September 28, 2012

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

 * Obama fills in blanks of Romney’s plans, and GOP sees falsehoods. Michael Cooper – The New York Times. The President Barack Obama campaign is taking advantage of the many unknown details of Mitt Romney’s policy proposals by filling in the blanks in the least flattering light, often relying on the findings of research organizations. The Obama campaign is running an ad based on an analysis of Romney’s vague proposals by the Tax Policy Center, a nonpartisan group, which found that it was impossible for his plan to achieve all of its stated goals. Link  

* Ayrault says wealthy ready to pay 75% tax. Hugh Carnegy – The Financial Times. Jean-Marc Ayrault, France’s prime minister, defended the imposition of a 75 percent marginal income tax rate on the eve of its introduction by his socialist government, insisting that many high earners were ready to pay the levy. The budget is set to be the toughest France has faced for 30 years, requiring 30 billion euros ($38.58 billion)in savings. Link 

* Swiss-German tax deal may face referendum hurdle. Nel Maclucas – The Wall Street Journal. Resolution of a long-running tax dispute between Switzerland and Germany may face a further hurdle in the form of a national referendum on the deal, initiated by a populist group opposed to the watering down of the Alpine country’s banking-secrecy laws. While the tax deal with Germany has been passed by the Swiss parliament, it could still founder on growing opposition from German opposition politicians. Link

* Spain’s crisis budget aims at spending cuts not tax rises. Andres Gonzalez and Paul Day – Reuters. Spain announced a crisis budget for 2013 based mostly on spending cuts on Thursday in what many see as an effort to pre-empt the likely conditions of an international bailout. The conservative government said tax revenue would be higher than originally budgeted in 2012 — partly due to a hike in VAT — allowing it to comfortably cut the public deficit to 6.3 percent from close to 9 percent last year. Link  

* The 47 percent here? Far fewer escape city’s income tax. Sam Roberts and Patrick McGeehan – The New York Times. In New York City, the “47 percent” is only 35 percent. That’s the share of city tax filers who, according to an analysis by the city’s Independent Budget Office released Thursday, paid no city income tax in 2010 — as opposed to the 47 percent of Americans that Mitt Romney, the Republican presidential nominee, said depend on government handouts, pay no federal income taxes and will vote for President Obama. Link  

* Wonkblog’s comprehensive guide to the debate over Romney’s tax plan. Dylan Matthews – The Washington Post. There’s no think tank report or academic study in recent memory that’s dominated a campaign the way the Tax Policy Center’s analysis of Mitt Romney’s tax plan has dominated this one. It’s all a bit much for a technical report with the dry-as-bone title, “On the Distributional Effects of Base-Broadening Income Tax Reform.” Link  

* Evan Bayh: ObamaCare’s tax raid on medical devices. The Wall Street Journal opinion. The Supreme Court decision in June upholding the Affordable Care Act leaves in place a tax on medical devices that threatens thousands of American jobs and our global competitiveness. It will also stifle critical medical innovation in the industry that gave us defibrillators, pacemakers, artificial joints, stents, chemotherapy delivery systems and almost every device we depend on to save lives. Link  

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