Competition and Tax Reform: A Thorn in Everybody’s Side
Running abroad like they’re being chased? Officials are making it known that the Treasury would like to crack down on US companies that change their address in order to lower tax bills. Corporations might speed up these tax-motivated inversions in advance of any changes to tax rules. Firms argue that such deals are a rational response to high US corporate tax rates.
Settling like it might be criminally charged? Credit Suisse could face another crackdown of sorts: The US may pursue criminal charges against the second-largest Swiss bank for helping Americans evade taxes. The bank has been under US scrutiny since 2011, and may settle its dispute with the United States and New York within a month.
For whom the states toll… The Obama administration’s $302 billion transportation bill would allow states to collect interstate tolls to fund their infrastructure development, reversing a long-standing prohibition. The change, shared this week, comes as the Federal Highway Trust Fund is expected to run dry by August. The White House proposal would replenish the Fund, now supported by an 18.4-cent per gallon gasoline tax, through a series of corporate tax reforms. The one-time revenue streams would close the fund’s deficit and permit $150 billion in spending beyond gas tax revenues. It remains unclear how well such a proposal would be received, politically or pragmatically.
Check it out and tune in if you can. The Urban Institute officially launches its new interactive public pension grading tool this afternoon, and it’s available now. Today’s event will be webcast live here at 12:30 Eastern time.
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