Tax Break

Essential reading: Athletes’ tough tax bills, and more

March 22, 2013

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

* Figuring athletes’ taxes is, well, taxing. Callum Borchers – The Boston Globe. The complicating factor for pro athletes is not how much they earn — though they often make millions of dollars per year — but where they earn it. With few exceptions, athletes owe income taxes in every state where they play. Link

* Renewed tax credit buoys wind-power projects. Diane Cardwell – The New York Times. Beyond the next year or so, the industry’s future remains in doubt, given the uncertainty over whether Congress will again extend the tax credit as part of an 11th-hour budget agreement or take up its purpose and ultimate fate as part of a broader corporate tax overhaul. Link 

* President may be quarterback, but today Congress plays a different game. John Harwood – The New York Times. The long-term shift in how Congress operates casts doubt on prospects for a breakthrough from the people who lead the House and Senate tax-writing committees, Representative Dave Camp, Republican of Michigan, and Senator Max Baucus, Democrat of Montana. Link 

* Senate votes against key health-law tax. Kristina Peterson – The Wall Street Journal. The Senate voted overwhelmingly Thursday night to repeal a tax on medical-device sales, despite the fact that the levy helps finance the health-care overhaul. Link

* ‘Tonight’ show would qualify for tax breaks in New York. The Associated Press. A Cuomo administration official says New York is trying to lure TV shows with its tax credits program and the “Tonight” show would qualify if it decides to move back to Manhattan. Link

*  China is urged to use carbon tax to tackle pollution. Richard Silk – The Wall Street Journal. China should enact a carbon tax and raise fuel and electricity prices if it hopes to tackle the pervasive pollution that is a byproduct of breakneck growth, the Organization for Economic Cooperation and Development said Friday. Link 

* Finland plants to cut corporate tax rate in 2014. Julhana Rossi – The Wall Street Journal. Finland’s government plans to further cut its corporate tax rate to 20% from 24.5% as of the beginning of 2014 as the nation’s leaders look to kick-start a stagnant economy and address concerns about a lack of competitiveness. Link 

* Treasure island trauma. Paul Krugman – The New York Times opinion. A couple of years ago, the journalist Nicholas Shaxson published a fascinating, chilling book titled “Treasure Islands,” which explained how international tax havens — which are also, as the author pointed out, “secrecy jurisdictions” where many rules don’t apply — undermine economies around the world. Link

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