Tax Break

Essential reading: Mickelson and the sports star migration, and more

January 28, 2013

Golfer Phil Mickelson of the U.S. REUTERS/Hans Deryk

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

Mickelson and the sports star migration. Allysia Finley – The Wall Street Journal opinion. America’s top-grossing golfer Phil Mickelson drove himself into a bunker on Jan. 20 when he said that federal and California state tax hikes had made him contemplate making “drastic changes” in his life —including, it was widely assumed, moving to a no-income-tax state such as Texas or Florida. But he was only stating publicly what many professional athletes are mulling privately. Link

Bank of America shifts derivatives to UK. Patrick Jenkins – The Financial Times. The move, part of the group’s global drive to rationalize its operations, has been encouraged by regulators but will also allow BofA to benefit from tax breaks stemming from the accumulated losses in its UK business. Link

Japan embraces modest business, investment tax breaks. Misuru Obe – The Wall Street Journal. As part of its evolving economic stimulus plan, the new Japanese government is adding a package of modest corporate and investment tax breaks to a big boost in government spending and a fresh dose of monetary easing from the Bank of Japan. Link  

Device makers add fees to cover healthcare tax. Christopher Weaver – The Wall Street Journal. Some medical-device companies faced with a new tax meant to help finance the health law are hoping someone else will pick up the tab: their hospital customers. Link

Interview: Deloitte deputy CEO Brian Derksen. Tracy Alloway – The Financial Times. High quality global journalism requires investment. Derksen, 61, is every inch the polished corporate executive. As deputy chief executive of DTTL, the parent company of an array of Deloitte-branded audit, consulting, advisory and tax subsidiaries, he has to be. Link

Populism, Republican style. Paul Krugman – The New York Times opinion. Republican Louisiana Governor Bobby Jindal recently rolled out a plan to replace his state’s personal income and corporate taxes with an increased sales tax. Such a move would shift taxes from the rich to the poor, who are disproportionately hit by the sales tax. Link

Tax code’s crazy complexity. Allan Sloan – The Washington Post opinion. Because of the way new, various pieces of legislation intersect, there is now a bizarrely narrow 35 percent federal bracket for single filers: $398,350 to $400,000 of taxable income. By contrast, the 33 percent bracket is wide: from $183,250 to $398, 350. Link

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