Tax Break

Essential reading: Airline industry’s tax troubles, and more

May 7, 2013

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

* Tax proposals open a debate on airline industry’s troubles. Susan Stellin – The New York Times. A $300 domestic airline ticket now includes about $60 in taxes — or 20 percent of the total fare — which pays for things like air traffic controllers, airport improvements, customs and immigration inspections and checkpoint screening. Link     

* Indefinitely reinvested foreign earnings on the rise. Maxwell Murphy – The Wall Street Journal. Foreign profits at U.S.-based multinational companies will soon top $2 trillion. But much of that sum is unlikely to return to the U.S., regardless of the status of U.S. tax rules, as it already has been spent abroad. Link   

* A strategy for business owners to avoid investment tax. Arden Dale – The Wall Street Journal. Before the tax strategy can be employed, advisers need to examine their business-owning clients’ Forms K-1 to determine if they are actively involved or whether they only have a passive role like an investor. Link    

 * Hopes of a truce for Vodafone and India are fading. James Crabtree – The Financial Times. A much-anticipated deal to settle the $2.6 billion tax row between the Indian government and Vodafone appears unlikely to happen for at least another year, in a further blow to faltering investor confidence in Asia’s third-largest economy. Link    

* Switzerland: Haven feels pressure to conform with global data sharing rules. James Shotter – The Financial Times. For a long time the Swiss tradition of bank secrecy was a potent calling card for the country’s private banks, helping them to draw in money from all over the world. Link    

* Backroom Internet tax ambush. The Wall Street Journal editorial. Now that the Senate has approved a bill to give state and local governments more power to collect Internet sales taxes, the bill’s author intends to find out what’s in it. Link

 * Muni bonds deserve a tax break. Manju Ganeriwala – The Wall Street Journal opinion. Unfortunately, President Obama’s budget includes a provision to limit the tax-exempt status of these bonds. This would make it more costly for governments, and ultimately taxpayers, to improve America’s roads. Link

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/