Tax Break

Essential reading: State Republicans divided on tax cuts, and more

May 2, 2013

Louisiana Governor Bobby Jindal speaks after the National Governors Association meeting in Washington, February 25, 2013. REUTERS/Kevin Lamarque

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

* Governors, GOP allies clash over tax cuts. Mark Peters and Neil King – The Wall Street Journal. Republican lawmakers in several states are blunting plans by GOP governors to reduce or eliminate income taxes, putting the legislators at odds with figures many in the party see as leading voices on reshaping government. Link

* FATCA treaties held up in U.S. Senate. Ben DiPietro – The Wall Street Journal. The U.S. Senate is unable to ratify three Foreign Tax Account Compliance Act treaties because of a hold by Senator Rand Paul, and if the delays continue much longer they could complicate implementation of the law, which is due to take effect in January. Link

* What Apple’s insanely great bond offering has to do with the Federal Reserve. Neil Irwin – The Washington Post. Apple’s bond sale is a clever maneuver of corporate finance that will likely prove beneficial for Apple shareholders, but in ways that show what’s wrong with U.S. tax policy. Link

* Sumner Redstone faces IRS heat for delinquent 1972 tax bill. Matthew Fleischer – The Los Angeles Times. Viacom Inc. and CBS Corp. Chairman Sumner Redstone may be a billionaire, but according to the U.S. Internal Revenue Service he’s also a tax delinquent. Link

* eBay’s Donahoe: “We’re not against Internet sales tax.” John Paczkowski – All Things D. CEO John Donahoe would like everyone to know that eBay’s stance against the Main Street Fairness bill is specific to that particular piece of legislation, and not to the broader idea of an Internet sales tax. Link

* Advisers look to limit trusts taxes. Arden Dale – The Wall Street Journal. Faced with higher tax rates on dividends, capital gains and income, some advisers say clients who own trusts may want to consider two strategies to limit their tax liabilities. Link

* What if you are audited by the IRS? Ann Carrns – The New York Times. In general, the likelihood of being audited is low. But audits have been on the rise in recent years as the I.R.S. tries to boost revenue. Link

* UK Tax haves agree to more transparency. Vanessa Houlder – The Financial Times. Britain’s Overseas Territories have bowed to pressure for greater tax transparency, in a move the government has hailed as “a turning point in the fight against tax evasion and illicit finance”. Link

* Lower taxes tapped a beer revolution. Tom Acitelli – The Wall Street Journal opinion. The story of the U.S. ascent to the top tier of world beer began in the late 1970s, when brewing was liberated from government taxation and regulation that had held it back since Prohibition. Link

* Fairness on sales taxes. The New York Times editorial. The proposed law would close that loophole, not impose new taxes. It’s a matter of efficiency and fairness, of necessity and competitiveness. Link

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