Tax Break

Essential reading: U.S. tax receipts may slow borrowing, and more

May 1, 2013

Welcome to the top tax and accounting headlines.

 * Rising tax receipts spark bets on reduced U.S. Treasury sales. Min Zeng – The Wall Street Journal. A surge in tax receipts has reduced the U.S. government’s borrowing needs, fueling speculation that a reduction of sales in notes could be coming for the first time since 2010. Link 

* To satisfy its investors, cash-rich Apple borrows money. Peter Lattman and Peter Eavis – The New York Times. By raising cheap debt for the shareholder payout, Apple also avoids a potentially big tax hit. Link 

* Ebay boss expects ‘uproar’ from small business over online tax. Tom Gara – The Wall Street Journal. eBay CEO John Donohoe believes small online sellers — who make up the majority of its customers — will face crippling costs complying with the proposed law, and wants them to be exempted from the new system. Link

* U.S. Widens Hunt for Offshore Accounts. Laura Saunders – The Wall Street Journal. The Internal Revenue Service is seeking bank records for U.S. taxpayers suspected of hiding accounts at a Caribbean lender, opening up a new front in efforts to combat offshore tax evasion. Link 

* Who claims the mortgage-interest tax deduction. Neil Shah – The Wall Street Journal. The deduction is much more popular in areas with relatively high incomes and property values, especially along the East Coast and in parts of the West. Areas in the South, by contrast, tended to abstain. Link 

* David Dewhurst says Texas Senate will push for more business tax cuts. Robert Garrett – Dallas Morning News. Lt. Gov. David Dewhurst says the Texas Senate will push for expanded tax cuts, adding relief for research-driven businesses and broadband and telecom companies to a package that already targets electricity ratepayers and small business. Link 

* India slashes tax on foreign investments in bonds. Mukesh Jagota and Anant Vijay Kala. India Tuesday slashed the rate of tax levied on the interest that foreign investors earn on their investments in local bonds to 5 percent from 20 percent, in its latest effort to attract foreign capital to help finance a wide current-account deficit. Link

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