Author Archive

Tax Rates: Growth, Competition, and Debt

Congress is in recess until September 8. The Daily Deduction will next appear on Tuesday, September 2. It will resume its regular schedule on Monday, September 8. Individual tax rates: If you cut them, what will grow? Representative Paul Ryan, who is likely to become the next chair of  the House Ways and Means Committee, wants […]

Use It or Lose It: The Authority to Tax, or Not

Congress is in recess. The Daily Deduction will return to its regular schedule on Monday, September 8. Until then: We’ll see you every Monday morning. Don’t like corporate inversions? If the Administration wants to stop them, it can. TPC’s Steve Rosenthal explains: Treasury has the authority to treat a corporation’s interest payments on debt to […]

August Avoidance: Corporate Taxes and Budget Realities

Congress is in recess. The Daily Deduction will return to its regular schedule on Monday, September 8. Until then: We’ll see you every Monday morning.  Walgreen might be the only one who’s tired of talking about inversions. The Illinois-based drugstore chain plans to keep its tax base in the US after purchasing Alliance Boots. But […]

Online Taxes: Searches, Storage, and Sales

Congress is in recess. The Daily Deduction will return to its regular schedule on Monday, September 8. Until then: We’ll see you every Monday morning. Abroad and online: One country brings a knife to a gunfight. Spain has passed a new law: Websites that link to Spanish newspaper association stories will pay a tax for […]

“You Got to Know When to Fold ‘Em”

Gambling with the Highway Trust Fund: The House always wins? As expected, the House rejected the Senate’s four-and-a-half month $8 billion highway funding patch passed earlier this week. The House returned its own 10-month $10.8 billion patch—the one that includes pension smoothing—back to the Senate. The Senate approved it last night by a vote of […]

What’s Love Got to Do with It? Not Much, in Congress

The Senate won’t “Bring Home Jobs…” at least not through the bill that would have denied tax deductions for costs of moving corporations out of the country. The Bring Home Jobs Act needed 60 votes to pass but received only 54. The House GOP may vote to put the estate tax to death. They’ve been […]

Reincorporation, Renunciation, and a Dose of Reality

There’s more than one way for a corporation to reduce taxes. It doesn’t have to reincorporate itself overseas. It could instead spin off a part of itself into a publicly traded real estate investment fund. As long as the new REIT distributes 90 percent or more of its income to investors as taxable dividends, it […]

How Do You Solve a Problem Like Inversions?

How do you catch a tax and pin it down? Can governments make corporations “stay and listen to all they say?” Treasury Secretary Jack Lew in his Washington Post op-ed called on Congress to immediately stop corporations from lowering taxes by incorporating overseas. Former Treasury official Steve Shay suggests the Administration doesn’t need to wait […]

A Showdown, Some Backlash and Big Bets

The Highway Trust Fund is almost out of gas. Congress leaves for its month-long recess on Friday, but without legislative action the fund will run out in August. The Senate is expected to vote on the amended bill this week, though it needs 60 votes to pass. Senate Majority Leader Harry Reid had scheduled a […]

There’s No Joy in Inversion-Ville

Corporate inversions: Not exactly a home-run campaign issue. But some Democrats are swinging for the fences anyway, including President Obama: “You shouldn’t get to call yourself an American company only when you want a handout from American taxpayers.” He reiterated a call for “economic patriotism” among corporations and a retroactive, speedy end to corporate inversions. […]