Daily Deduction

from the Tax Policy Center

Settlement, Disappointment, and Equality

By :: April 4th, 2014

One last reminder: You can tune in to a live webcast this morning at 9:00 am for “Major Surgery Needed:  A call for structural reform of the US corporate income tax.” The event is cosponsored by the American Enterprise Institute and the Tax Policy Center.

Extending the Extender Talks. The Senate Finance Committee yesterday approved a measure restoring scores of tax breaks that expired last December. TPC’s  Gene Steuerle offers his take on why most tax extenders should not be permanent: “With a few exceptions, most should not be made permanent. However, I’d extend most of them for a more than a year at a time according to the purpose they are meant to serve.”

Credit Suisse may be preparing to settle. In an effort to avoid prosecution for helping wealthy Americans evade taxes on its accounts, the bank is setting aside extra funds to resolve its  long-running tax dispute with the United States, according to Reuters. Switzerland’s second-largest bank restated its fourth quarter losses to $534 million as a result.

District Disappointment. Following his loss in the D.C. mayoral primary, Mayor Vincent Gray released his final budget with not a bang but a shrug. He rejected key revenue-raising recommendations of the D.C. Tax Revision Commission as politically untenable, leaving no room for recommended income tax relief for businesses and low-income residents.

Same Sex Marriage: equal under the federal tax code, and now Medicare. The Obama Administration already allows married same-sex couples to file taxes together even if their state does not recognize their marriage. As of today, they can qualify for Medicare hospital and physician benefits too. Bureaucracies seem to favor equality, perhaps for efficiency’s sake.

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