Tax Break

Essential reading: CEOs vow to work with Obama team, and more

November 8, 2012

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

 * CEOs vow to work with Obama team. John McKinnon and Colleen Nelson – The Wall Street Journal. Business leaders pledged cooperation with President Barack Obama on Wednesday, hoping to reset their relationship after a campaign season marked by White House criticism of corporations and the wealthy. As an overture to the re-elected president, some business leaders said their Republican allies in Congress will have to temper their expectations on some major issues that have divided the two parties. Link  

* Product questions and threats of higher tax hit Apple shares. Nick Wingfield – The New York Times. On Wednesday, Apple’s shares slid 3.8 percent. They outpaced a broader decline in the stock market set off by investors’ uncertainty about how the outcome of the presidential election will affect taxes. Link  

* U.S. workers may give up time off as storm aid. Catherine Rampell – The New York Times. The Internal Revenue Service said Tuesday that American employees could donate, through payroll deductions, their vacation, sick and personal leave days to organizations helping with Hurricane Sandy relief efforts. The IRS allowed such donations after the Sept. 11 attacks and after Hurricane Katrina. Link  

* Has Obama been given a mandate to raise taxes on the wealthy? Suzy Khimm – The Washington Post. Does Obama’s win last night mean tax hikes for the rich are on their way? That’s what leading Democrats and liberal supporters of the president are saying this morning: The president and victorious congressional Democrats campaigned heavily on raising taxes on the wealthy, and voters approved of that message. Link to The Washington Post, http://r.reuters.com/num83t

 * California universities roll back tuition after tax hike passes. Mary Slosson – Reuters. California’s Democratic Governor Jerry Brown, eager to show quick results from newly passed twin tax hikes he promoted to avoid drastic education cuts, joined state university officials on Wednesday to announce an immediate rollback in tuition rates. Officials said new revenues from temporary tax increases approved by voters on Tuesday allow the 23-campus California State system, the nation’s largest four-year state university network, to avert a $250 million mid-year budget cut. Link

* Youth support drives passage of California tax-hike measure. Sarah McBride – Reuters. California’s 74-year-old governor, Jerry Brown, engineered a surprise victory for his tax-hike ballot proposition by tapping support at the other end of the age spectrum. Proposition 30, a temporary $6 billion tax hike, passed with a solid 54 percent approval on Tuesday, driven largely by a higher-than-expected turnout of young voters, pollsters and analysts say. Link  

* Tech groups win poll victory on tax. April Dembosky – The Financial Times. San Francisco’s tech industry enjoyed a victory when voters passed a law to reform the city’s corporate tax law. Now companies will pay business taxes based on their sales, instead of the number of employees on their payroll. Link 

 * Hollande’s good idea. The Wall Street Journal editorial. François Hollande this week floated a 20 billion euro ($25.51 billion) payroll tax break to businesses over the next three years as part of a package of “competitiveness” reforms to spur growth, investment and hiring. It’s a long way from an economic revolution. Link  

($1 = 0.7840 euros)

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