Tax Break

Essential reading: Republicans shift tone on taxing the rich, and more

October 9, 2012

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

 * Republicans shift tone on taxing the rich. Stephanie Kirchgaessner and James Politi – The Financial Times. Some Republicans are shifting their tone on the prospect of increasing taxes on wealthy Americans, in a move that could ease concerns about the US plunging off the “fiscal cliff” after the November election. A senior Republican aide in the House of Representatives told the Financial Times there was an internal debate within the party, with one side arguing that Republicans would be better off to “give in” to Democratic demands for an increase in taxes for individuals making more than $250,000 if Barack Obama were re-elected. Link  

* Romney’s no-net-decrease tax stand may help him weather public’s dim view of Republican Party. The Associated Press. Mitt Romney is now distancing himself a bit from some Republican Party policies, most notably by emphasizing that he doesn’t want to cut taxes for high earners. That’s probably a smart move, say Republican activists in regions where it’s getting harder to sell the party’s brand. Link  

* UK’s Osborne to slash welfare but quiet on growth. Matt Falloon and Guy Faulconbridge – Reuters. Chancellor of the Exchequer (finance minister) George Osborne and Prime Minister David Cameron are trying to use their party’s annual conference in Birmingham to project an image of economic prudence and have promised more spending cuts across the board. His plans may cause tension with the government’s Liberal Democrat junior coalition partners. Osborne dismissed their calls for a “mansion tax” on expensive homes or a further tax on the wealthy. Link  

* The best and worst governors on growth. Chris Edwards – The Wall Street Journal opinion. Federal lawmakers have created an economic mess with their chronic overspending and inability to deliver stable, pro-growth tax policies. Perhaps the elections will break the Washington gridlock and knock loose some solutions. Until then, state capitols are the only place where there is real fiscal progress. Link  

* Welcoming higher taxes, but not that high. Andrew Ross Sorkin – The New York Times. François Hollande, France’s socialist president, proposed a 75 percent marginal tax rate on all income over $1.3 million. Now many of the nation’s wealthiest executives and entrepreneurs, private equity managers and others who are millionaires, or people who want to become millionaires, are crying foul. Link  

* When the tax tail wags your investment dog. Carl Richards – The New York Times opinion. With less than a month to go until Election Day, it’s hard to miss all of the speeches about taxes. Tax rates, tax codes, tax deductions. So it’s easy to see why we’re so tempted to get really focused on our own personal tax situation and how to eke out a better result for ourselves. Link

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