Tax Break

Essential reading: Democrats target corporate tax breaks, and more

February 4, 2013

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

 * Democrats target corporate tax breaks. James Politi – The Financial Times. Senate Democrats want to slash corporate tax breaks in search of new revenue, as an alternative to $1.2 trillion in impending across-the-board spending cuts, digging in against Republicans who are opposed to higher taxes and stoking calls for a revival of bipartisan deficit talks. Link

 * ‘Tobin tax’ push causes dismay. Chris Flood – The Financial Times. The European Commission appears determined to press ahead with a Europe-wide financial transaction tax in spite of warnings that it threatens the existence of Europe’s 1 trillion euro ($1.37 trillion) money market funds industry. Link 

 * Accounting group hits back at politicians. Adam Jones – The Financial Times. Politicians are unfairly demonising accountants over tax avoidance, according to the head of the UK’s leading accounting institute. The hit back comes after tax experts from the four biggest accounting firms were accused of undermining “the public good” in parliament last week. Link

 * How to be smarter about taxes. Michael Pollock – The Wall Street Journal. Thanks to the fiscal-cliff negotiations, tax rates are going up for the highest earners. Even those a few rungs lower on the earnings ladder are getting hit with new levies. Link 

 * Protect against tax identity theft. Tom Herman – The Wall Street Journal. Thieves can create havoc by filing bogus tax refunds using someone else’s Social Security number that has been stolen. The painful result: Victims face delays in getting their refunds. Link 

 * Rise in oil tax forces Greeks to face cold as ancients did. Suzanne Daley – The New York Times. In raising the taxes, government officials hoped not just to increase revenue but also to equalize taxes on heating oil and diesel, to cut down on the illegal practice of selling cheaper heating oil as diesel fuel. Link 

 * Bobby Jindal wants to swap Louisiana’s income tax with a sales tax. Dylan Matthew – The Washington Post. Louisiana Gov. Bobby Jindal has proposed eliminating the state’s income and corporate taxes and making up the nearly $3 billion in lost revenue through sales tax hikes. Link

 * Beating the H&R tax blockers. The Wall Street Journal editorial. Big government and big business are often blood brothers, colluding to squeeze out the little guy. So here’s a shout out to a group of small-business tax preparers who have struck a blow for competition and the rule of law. Link

 * Harry always wants more. The Wall Street Journal editorial. The man who runs the U.S. Senate gave a rare interview on Sunday, but his message was familiar: Before they reduce spending, Democrats want still another tax increase. Link

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