Tax Break

Essential reading: Higher payroll tax pinches those with the least to spare, and more

February 8, 2013

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

* Higher payroll tax pinches those with the least to spare. Nelson Schwartz – The New York Times. At street level, the pain from the expiration of a two-percentage-point break in Social Security taxes in 2011 and 2012 is plain to see. Link

* Tax holiday ends, consumer scrimp. Neil Shah – The Wall Street Journal. Surveys show the majority of Americans who are aware of the tax increase say they plan to cut spending, and consumer confidence has wavered. Link

* Obama’s pre-Superbowl attack on carried interest puts PEGCC on offensive. Hillary Canada – The Wall Street Journal. Following a prime-time attack on carried interest by President Barack Obama, the private equity industry’s lobby group appears to be girding up for a fight regarding carried interest. Link

* U.K. runs tax deal past Usain Bolt. Peter Evans – The Wall Street Journal. The U.K. government is hoping to tempt Olympic gold medalist Usain Bolt to race again in London this summer after granting a one-off tax exemption that has previously deterred the sprinter from competing in Britain. Link

 * Falling commodities prices hit Australian mining tax. James Glynn and Enda Curran – The Wall Street Journal. Australia’s government said it raised 126 million Australian dollars (US$130 million) over six months from a new tax on mining and resources, far less than expected because of falling commodity prices and the strength of the local currency. Link

* ’666′ on tax form causes Christian worker to quit his job. Bob Smietana – USA Today. Walter Slonopas, 52, resigned as a maintenance worker at Contech Casting LLC in Clarksville after his W-2 tax form was stamped with the number 666. Link

* A sensible change in taxing derivatives. Victor Fleischer – The New York Times opinion. Republican Rep. Dave Camp’s proposed legislation is an important first step toward a more sensible approach to taxing financial instruments, an area of the tax code plagued by complexity, inconsistency and opportunities for gamesmanship. Link

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