Tax Break

Essential reading: UK Revenue officials face grilling over multinationals’ taxes, and more

November 5, 2012

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

 * HMRC to face MPs over multinationals’ tax. Vanessa Houlder – The Financial Times. Top UK Revenue officials who will appear before MPs on Monday are likely to come under renewed pressure over the tax affairs of some of the highest profile multinationals operating in Britain. Starbucks, Google, Amazon, Facebook and eBay have been the focus of intense scrutiny after it emerged that they paid corporate tax of a few million pounds. Link  

* Some taxes are sure to go up. John McKinnon – The Wall Street Journal. Taxes on investment income are going up no matter who wins Tuesday’s elections, at least for higher-income households. The tax breaks for capital gains, dividends and other types of investment income are an appealing place to look for revenue. Link 

 * Middle class faces quick impact from fiscal cliff in form of alternative minimum tax. Lori Montgomery – The Washington Post. The best hope for a deal to avoid the “fiscal cliff” may lie with the alternative minimum tax, an obscure provision of the tax code that is about to become alarmingly relevant to millions of middle-class taxpayers. Link

* Real progress, but we’re not done. Barack Obama – The Wall Street Journal opinion. In the eight years after Bill Clinton, we passed bigger tax cuts for the wealthy we couldn’t afford. We shouldn’t end college tax credits to pay for millionaires’ tax cuts. Link  

* Republican tax priorities. The New York Times editorial. If Congressional Republicans get their way, expiring cuts in the estate tax for America’s wealthiest families will be extended in 2013. But under their cruel plan, enhancements to tax credits for low- and moderate-income working families, which are also set to expire at the end of the year, would end. Link

* Comparing the tax bite with Obama and Romney. James Stewart – The New York Times opinion. What federal tax rate would you pay if Mitt Romney were elected president? And what would it be if Barack Obama? The paradox is that many Republicans and Democrats support tax reform, but no one would know that from the campaign rhetoric. Link

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