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.
Unstable Stock Market Could Hurt State Tax Budgets
While many feel the wealthy should be paying more in taxes, the efforts to enforce this strategy does have some consequences for state budgets. Many of the country’s wealthiest individuals hold the majority of their wealth in stocks. That means when the stock market goes down, so do the tax payments of the wealthy. In…
Florida Looking to Lure More Wealthy Taxpayers
The reports regarding many of the nation’s wealthy packing up and moving to different states in order to avoid the high taxes where they currently reside continue to mount. According to one such report, David Tepper, the president of Appaloosa Management L.P., who is the wealthiest resident of New Jersey, is in fact no longer…
How Long Does it Really Take to Prepare Business Taxes?
How Long Does it Really Take to Prepare Business Taxes? For most people, just hearing the words business taxes is enough to cause uneasy feelings, but for business owners the thought of doing their own business taxes can be a nightmare. Filing individual tax returns can be hard enough but the process gets even more…
Tax Topics Business Owners Need to Know
Being the owner of a small business can be very rewarding, but very challenging at the same time. One of the biggest challenges small business owners face is dealing with taxes. There are countless items to keep track of and monitor with small business taxes, but these are some of the most important issues to…