Democrats Take Dead Aim at Tax Inversions
The democrat lead U.S. Senate has been making a lot of noise lately regarding tax inversions, the practice of U.S. companies moving their corporate headquarters overseas in order to avoid the high price of overbearing U.S. corporate taxes.
Those senators have apparently made good on a recent promise that they would look to put a stop to such deals. According to reports, Senate democrats have introduced a proposal that would make inversions less attractive to U.S. companies. One of the provisions they have added is to eliminate the practice of earnings stripping. This practice allows American companies to borrow from parent companies overseas while still being able to deduct the interest expense on their stateside taxes.
The proposal would no longer allow U.S. companies to have 1.5 times as much debt as equity while deducting all allowable interest costs. The proposal is expected to be part of an even larger far-reaching bill that could be introduced later this year. However, the Republican-lead congress is said to be cautious about passing such a proposal for fear it could make U.S. companies more susceptible to foreign takeover attempts.
Whatever happens, it’s obvious that the practice of tax inversions is going to continue to be a “hot-button” issue amongst U.S. lawmakers and large corporations alike. Do you have questions about tax inversions or other international tax-related issues? Then give us a call at 1-877-CPA-2006 or click here to contact us online.
How Some Big Companies Are Maximizing Their Tax Benefit
How Some Big Companies Are Maximizing Their Tax Benefit There’s no question that the IRS is always looking for ways to get every penny they can from the nation’s taxpayers, whether they be individuals or businesses. On the other hand, many are also doing whatever they can to pay as little as possible, some, even…
Federal Government Still Facing Huge Deficit
Federal Government Still Facing Huge Deficit Does it seem like no matter how much money the federal government collects in tax revenue, they will still never have enough? For a lot of people the, answer is a resounding “yes.” The country’s Monthly Treasury Statement lends even more credence to that belief. What does the Treasury…
The IRS is Not a Bully – You can poke a bully in the nose.
The IRS is Not a Bully You can poke a bully in the nose. This is the third installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in ways its founders never intended, until it’s…
Could You Pay More to Drink Soda in Berkeley?
Could You Pay More to Drink Soda in Berkeley? We all know that obesity is a problem in our country. Activists and other interested parties continue to work on ways to help curb this growing problem. Indeed, obesity is neither good for individuals or for our country. However, would creating a new tax to help…