Tax Break

Essential reading: After Sandy, tax cuts fade from Christie plan, and more

January 9, 2013

Ortley Beach, New Jersey after super storm Sandy REUTERS Tom Mihalek

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

 * After Sandy, tax cuts fade from Christie plan. Heather Haddon – The Wall Street Journal. In his annual address to the state on Tuesday, New Jersey Gov. Chris Christie laid out what he said would be a difficult road ahead as the state recovers from Sandy—a somber departure from last year, when he extolled the state’s economic health and centered his agenda around an aggressive income-tax cut. Link

* Despite promise, federal tax-refund debit cards a no go. Ann Carrns – The New York Times. Giving consumers who lack accounts at a bank or credit union the option of getting tax refunds on multiuse, prepaid debit cards may help bring them into the financial mainstream, a report from the Urban Institute finds. But the accounts must be low-cost, easy to use and available early in the tax season to encourage their use. Link 

 * Mega-millionaire, 79, admits offshore tax evasion. Kevin McCoy – USA Today. A Palm Beach heiress and charity benefactor pleaded guilty Tuesday to using foreign bank accounts to hide more than $43 million from the IRS in one of the largest cases in the continuing U.S. crackdown on offshore tax evasion. Link  

* U.S. board sets accounting rules on mergers for state government. Reuters. The U.S. board that sets accounting standards for state and local governments on Tuesday approved new protocols on reporting mergers and transfers of operations that are specifically tailored to the public sector. Link  

* Indian tax officials raid Nokia factory. Sven Grundberg and Rumman Ahmed – The Wall Street Journal. Indian tax officials raided a Nokia Corp. facility in Chennai, India, one of the Finnish handset maker’s largest plants. The raid most likely was related to the allocation of taxes between India and Finland, where Nokia is based. Link  

* Depardieu and the new capitalism. Vadim Niktin – The New York Times opinion. Tax exile is nothing new. European countries have a long history of wooing one another’s rich with offers of bigger salaries and smaller government. Link

* A loser of a tax deal. Harold Meyerson – The Washington Post opinion. Almost all of the debate that convulsed Capitol Hill in December concerned the reinstatement of the highest marginal tax rate on earned income – that is, on wages and salaries. But as Fitzgerald said, the rich are different from you and me, and one of the primary ways they’re different is that they don’t get their income from wages and salaries. Link

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