Tax Break

Essential reading: Checking tax facts from the presidential debate, and more

October 23, 2012

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

 * Fact check: The ‘territorial tax.’ Josh Hicks – The Washington Post. The president said on Monday that Mitt Romney wants to provide more tax breaks for companies that move overseas. He was referring to Romney’s proposal to enact a “territorial tax” system that would allow U.S.-based companies to bring foreign-earned profits back home without paying U.S. taxes. Link

* Congressman Chris Van Hollen wants to consider another payroll tax holiday. Suzy Khimm – The Washington Post. Neither party seems particularly keen on extending the payroll tax cut for another year. But its defenders are slowly beginning to emerge on the left. Link  

* Romney to target tax and regulation. Stephanie Kirchgaessner and James Politi – The Financial Times. A victory for Mitt Romney next month would bring about a sweeping change in the relationship between business and government by putting tax reform and deregulation at the top of the US domestic policy agenda. Link

* Schools face test from voters. Stephanie Banchero – The Wall Street Journal. Voters in five states will decide next month whether to raise taxes to help fund public schools, part of a slew of ballot initiatives this year that reflect the intensifying nationwide battle over how to run government-funded schools. Arizona, Missouri and South Dakota have tax-increase measures on ballots, while California is offering voters dueling proposals. Link  

* Tax break to lure Oracle to Pa. awaits Corbett’s signature. The Philadelphia Inquirer. A proposed tax incentive designed to attract software giant Oracle to the Pennsylvania State University area and worth millions to other businesses that hire Pennsylvania workers is awaiting Gov. Corbett’s signature after clearing the state House and Senate in the waning days of the 2011-2012 session. The bill would allow employers that hire 250 new workers to keep 95 percent of the workers’ state income taxes. Link  

* New ad targets Jerry Brown’s tax plan. Anthony York – The Los Angeles Times. Opponents of Gov. Jerry Brown’s tax initiative, Proposition 30, have launched a new television ad, again calling the measure an effort to mislead voters. The new ad comes as Gov. Brown has begun a barnstorming tour of the state in support of his tax plan, which is facing a tough fight according to public opinion surveys. Link  

* The Obama storm tax. The Wall Street Journal editorial. Behold the Obama Administration’s new public works plan. Sue cities for polluting waterways and then as part of a settlement require them to spend, er, “invest” billions in extraneous sewer improvements. The White House doesn’t even need legislation to pour this money down the drain. Link  

* Where the candidates agree. Joe Nocera – The New York Times opinion. Judging by the first two presidential debates there is one area where Mitt Romney and President Obama are in at least quasi agreement: the need for serious tax reform. Romney and the president both want to lower the corporate tax rate and get rid of numerous loopholes. Link

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