Essential reading: Yankees embrace frugality to dodge tax, and more

March 12, 2013

New York Yankees then manager Joe Torre (L) puts a Yankees cap on Alex Rodriguez, one of the  highest paid players in baseball. February 17, 2004 REUTERS/Peter Morgan

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

* Penny-pinching in pinstripes? Yes, the Yanks are reining in pay. David Waldstein – The New York Times. The Yankees no longer want to pay Major League Baseball’s luxury tax, after spending years of happily soaring beyond the payroll threshold that determines that tax. Link    

* House and Senate work simultaneously to create budgets, a rarity. Jeremy Peters – The New York Times. The Democrats plan to rely heavily on closing tax loopholes that benefit corporations and the wealthy to produce new revenue, while Republicans will focus on slashing spending to balance the budget in 10 years. Link 

* Paulson eyes Puerto Rico tax haven move. Dan McCrum – The Financial Times. Billionaire John Paulson has explored abandoning his native New York for the tropics of Puerto Rico as he tries to shield his fortune from US tax collectors. Link    

* Checking your home buyer tax credit status. Ann Carrins – The New York Times. The entire credit may have to be repaid if the home was sold or no longer used as a main home within 36 months from the date of purchase. Link    

 * City leaders fear tax plan. Heather Haddon – The Wall Street Journal. As a bill to overhaul New Jersey’s tax-incentive programs rapidly makes its way through the state Legislature, some city leaders and planning groups are raising concerns that the legislation will shift development away from urban centers. Link    

 * Local economists back Patrick’s tax hike plan. Andrea Estes – The Boston Globe. Massachusetts Democrat Governor Deval Patrick’s proposal, which would generate an additional $1.9 billion annually, raises the income tax from 5.25 to 6.25 percent, while cutting the sales tax from 6.25 to 4.5 percent. Link 

* How to tax India’s rich. Joanna Sugden – The Wall Street Journal. In the recent budget, India’s finance minister announced a new tax on those with an annual income of more than 10 million rupees ($183,000.) About 42,800 Indians would be hit, which seems low in a country with 125,000 dollar millionaires. Link 

* The hidden tax behind Wall Street reform. Clifford Asness and Aaron Brown – The Wall Street Journal. Tied to the discussions of carried interest is another debate that, if resolved incorrectly, would mean the enactment of a pernicious and economically destructive new tax. Link   

 * The Republican plan to balance the budget by 2023. Paul Ryan – The Wall Street Journal opinion. On Tuesday, we’re introducing a budget that balances in 10 years —without raising taxes. How do we do it? We stop spending money the government doesn’t have. Link

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