Tax Break

Essential reading: Charities battle Obama over taxes, and more

December 14, 2012

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

 * White House, nonprofit groups battle over charitable deductions. Jerry Markon and Peter Wallsten – The Washington Post. The White House and the nation’s most prominent charities are embroiled in a tense behind-the-scenes debate over President Obama’s push to scale back the nearly century-old tax deduction on donations that the charities say is crucial for their financial health. Link  

* Wealthy Americans gird for their own cliff. Jennifer Smith – The Wall Street Journal. Whatever happens with the “fiscal cliff,” wealthy Americans could be paying their last respects to generous tax breaks that let them pass millions of dollars to heirs and other recipients tax-free. Link  

* With gap wide and time short, Obama and Boehner meet. Jonathan Weisman and Jackie Calmes – The New York Times. With time running short to work out a deal to avert a year-end fiscal crisis, President Obama called Speaker John A. Boehner to the White House on Thursday evening to try to move talks forward even as pessimism mounted that a broad deal could be struck that bridges the substantial gap between the parties on taxes and entitlements like Medicare. Link  

* Sen. Baucus committed to ‘comprehensive tax reform.’ John McKinnon – The Wall Street Journal. In comments that could cheer supporters of a big tax overhaul, the chairman of the powerful Senate Finance Committee said he still supports “comprehensive tax reform” next year. And Democrat Sen. Max Baucus said he hopes to set up an expedited process for a tax rewrite through the year-end fiscal cliff deal. Link  

* Pew study: some state tax incentives turn into traps. John McKinnon – The Wall Street Journal. A new study by the Pew Center on the States says some states are creating tax traps for themselves by setting up tax incentives for economic development that are open-ended or otherwise lack sufficient controls. Link 

 * Nike presses for 40-year tax deal in Oregon. Shelly Banjo – The Wall Street Journal. Nike Inc., the world’s biggest sneaker maker, is expanding its operations in the U.S. and has threatened to move if Oregon cannot guarantee its corporate tax structure will remain the same. Link

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