Tax Break

Essential reading: Businesses become REITs to avoid taxes, and more

April 22, 2013

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

* Restyled as real estate trusts, varied businesses avoid taxes. Nathaniel Popper – The New York Times. A small but growing number of American corporations, operating in businesses as diverse as private prisons, billboards and casinos, are making an aggressive move to reduce — or even eliminate — their federal tax bills. Link    

*  European FTT could cost U.S. funds ‘up to $35 billion.’ Mark Cobley – The Wall Street Journal. Europe’s proposed levy on financial transactions could cost U.S. money market funds up to $35bn, according to the first quantitative analysis of the impact of the tax on the U.S. funds industry. Link    

* Survey: Economists say higher taxes, lower government spending not affecting businesses. The Associated Press. The National Association for Business Economics survey asks how higher taxes and lower government spending effected businesses in the first three months of 2013. Link    

* Wealthy Britons pay 10 percent more in tax. Ainsley Thomson – The Wall Street Journal. U.K. Treasury chief George Osborne claimed a small victory Monday in his fight to tackle tax evasion, as the country’s tax department netted a 10% increase in the revenue it raised from wealthy Britons last year. Link 

* Tax pensioners more, says Fabian Society.Ferdinando Guigliano – The Financial Times. UK pensioners should be asked to pay more tax to promote intergenerational fairness in the housing market, the Fabian Society, the leftwing think-tank, urged in a report issued on Monday. Link    

* It’s not too late to claim a tax credit. Tom Herman – The Wall Street Journal. To collect the earned income tax credit, you have to file a tax return. Even though April 15 has come and gone, it isn’t too late to act. Link    

* ‘Don’t just spend it’ -Smart moves for your tax refund. Brett Arends – The Wall Street Journal. Financial planners point out that many people treat the money as a windfall and spend it. Link    

* Internet sales tax rush. The Wall Street Journal editorial. Every time Congress has taken a serious look at proposals to boost Internet sales taxes, it has rejected them. That’s probably why pro-tax Senators are trying to rush through an online tax hike with as little consideration as possible. Link    

 * Our feelings about inequality: It’s complicated. Ilyana Kuziemko and Stefanie Stantcheva – The New York Times opinion. It seems like a paradox: Americans are increasingly worried about the gap between rich and poor, but are hesitant to have the government do anything about it. Link

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