Tax Break

Essential reading: Fact or fiction in the U.S. presidential debate? and more

October 4, 2012

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

 * Fact or fiction in the U.S. presidential debate? Deborah Charles – Reuters. President Barack Obama and his Republican rival, Mitt Romney, faced off in their first of three debates before the Nov. 6 presidential election. Here is some fact-checking of claims made by the candidates. Link  

* Romney floats tax deductions cap idea resembling one from Obama. Kevin Drawbaugh – Reuters. Mitt Romney’s talk of putting a cap on income tax deductions aligns him with others, including President Barack Obama, behind a tax code change that could gain traction in Washington. On Tuesday, the eve of his first debate with Obama, the Republican presidential challenger told Fox News TV in Denver that one option for changing the code could be to cap deductions, perhaps at $17,000 for a middle class family. Link  

* Candidates spar over taxes. Carol Lee and Sara Murray – The Wall Street Journal. Cutting to the heart of their differences, President Barack Obama and Republican Mitt Romney laid out contrasting visions for the federal government in their first debate in Denver, sparring over tax-cut proposals, regulations and deficit-reduction plans. Link

* The battle over tax hikes. Lori Montgomery – The Washington Post. Would Mitt Romney raise taxes on the middle class? It’s become one of the central issues of the campaign. President Obama is pressing that charge, based on a study released in August by the nonpartisan Tax Policy Center, which concluded that meeting all of Romney’s goals for tax reform is “not mathematically possible.” Link  

* Romney team provides details on tax. Damian Paletta – The Wall Street Journal. Earlier this week, Republican presidential nominee Mitt Romney floated the idea of possibly capping tax deductions at $17,000 as a way to complement his plan to lower tax rates for all Americans. Now aides are offering more information about his idea. There are three different “buckets” in this proposal: deduction caps, personal exemptions and healthcare. Link 

* Romney, Obama both like Simpson-Bowles plan, to a point. Kim Dixon – Reuters. Republican hopeful Mitt Romney and President Barack Obama praised the deficit-cutting plan known as Simpson-Bowles at their debate on Wednesday, but neither has made the politically painful choices put forward by that scheme. Both candidates held up the 2010 deficit panel’s report as a model at the first debate in Denver, and Romney blasted Obama for not fully embracing the proposal, which seeks to pare the deficit, which has topped $1 trillion in recent years. Link to Reuters,


* Tax advisers make the leap to financial advice. Arden Dale – The Wall Street Journal. Not every tax accountant is cut out to be a financial planner but many are making the jump as they look for wider horizons as baby boomers retire and seek financial advice. Link to The Wall Street Journal,


* Overseas cash and the tax games multinationals play. Victor Fleischer – The New York Times. More than a trillion dollars in cash and short-term investments sit in offshore holding companies, awaiting a repatriation tax holiday. In the meantime, tax professionals spin out ways to manipulate the system. The tax code provides multinationals based in the United States with many incentives to shift income to foreign low-tax jurisdictions. Link to The New York Times,

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