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.
What is Sole Proprietorship?
What is Sole Proprietorship? A sole-proprietorship is a business that is owned by one person or by a husband and wife. Unless the business is formed as a corporation or a limited liability company, it will be a sole-proprietorship by default. One of the biggest advantages of operating a business as a sole-proprietorship is that…
Conducting Your Business as a Corporation
Conducting Your Business as a Corporation The limited personal liability of a corporation isn’t ironclad. In the event the business ends up owing more money to a creditor than it has the ability to pay, the creditor will then look to the business owner. Under a legal theory known as “piercing the corporate veil,” if…
Budgeting For Your Business
Budgeting For Your Business “Your business opportunities improve with the use of a budget, a powerful tool which assists you in achieving your financial goals.” Introduction: A well-designed budget helps you: Predict income and expenses Control cash flow Communicate financial goals As an entrepreneur, you may not have the time or financial expertise to establish…
Deducting Start-Up Expenses: An Open Or Shut Case
Deducting Start-Up Expenses Starting a business typically takes more than a little know-how. More often than not, it requires cold, hard cash. However, there is some good news — you may qualify for a little help from Uncle Sam in the form of a tax deduction for some of your start- up costs. The costs,…