Tax Break

Essential reading: Senate votes on tax hikes in budget, and more

March 21, 2013

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

* As Senate passes spending measure, stark budget views are on display in House. Jeremy Peters and Jonathan Weisman – The New York Times. House Republicans brought to a vote the budget proposed last week by Senate Democrats in the hope that they could divide their opponents’ ranks and put them on record supporting its $1 trillion in tax increases. Link

* Rewrite of partnership tax rules could shake real estate. Richard Rubin – Bloomberg. The more dramatic of two tax proposals from Dave Camp, the top Republican tax writer in Congress, would remove some of the flexibility that has made partnerships attractive legal structures for real estate investors and hedge funds. Link

* Some Republican governors find a tax they’d like to raise rather than cut. The Associated Press. Although a break from the GOP’s anti-tax ideology, Michigan Gov. Rick Snyder’s gas tax increase proposal shows a dicey willingness among some Republican officials to begin raising more revenue. Link

* Cuomo, legislature promise tax cuts in NY budget. The Associated Press. Gov. Andrew Cuomo and New York legislative leaders have sealed a tentative $135 billion budget deal for 2013-14 that controls spending and promises tax cuts. Link

* Maryland Republicans denounce gas tax increase. Michael Dresser – The Baltimore Sun. Hours before the House was scheduled to debate a proposed increase in gas taxes supported by Gov. Martin O’Malley, Republicans lawmakers excoriated the plan Wednesday as a $2 billion drain on taxpayers’ wallets over the next six years. Link

* Pittsburgh challenges medical center’s tax status. Kris Maher – The Wall Street Journal. The city of Pittsburgh asked a court Wednesday to remove the tax-exempt status of the University of Pittsburgh Medical Center, one of Pennsylvania’s biggest employers, to compel it to pay payroll taxes to the city. Link

* UK budget 2013: London to benefit from abolition of duty. David Oakley and Elaine Moore – The Financial Times. Scrapping the so-called ‘schedule 19’ tax will bring the UK in line with Dublin, which also charges no tax, and make it more competitive than Luxembourg, which charges a small fee. Dublin and Luxembourg are the UK fund management industry’s main offshore rivals. Link

* House panel moves to fire workers with overdue tax liens. Joe Davidson – The Washington Post opinion. The House Oversight and Government Reform Committee approved legislation Wednesday that could result in the firing of some federal employees who owe taxes and block job candidates in the same fix. Link

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