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.
Embracing Respectful Conflict
What is embracing respectful conflict? Upon hearing the phrase “embrace respectful conflict,” people often won’t have a clue what it means, but in fact, embracing respectful conflict is a key component in building trust within a team. A fact of life Almost no one agrees on everything. People have their own opinions, ideas and procedures.…
World’s 50-Best Restauants
World’s 50-Best Restauants Looking for the world’s 50-best places to eat? In an attempt to offer a small ray of hope to those thinking about when life returns to normal, we thought some of our readers might find a 50-best restaurants article hopeful. Why this article now? This article was updated during the COVID-19 pandemic… …
Growth Stocks Vs. Value Stocks, The Untold Reality
Growth Stocks Vs. Value Stocks, The Untold Reality When considering Growth Stocks Vs. Value Stocks the untold reality, I’d like to share the following with you. Russell Investments makes the case in its “2021 Equities Outlook – Values Time to Shine?” that value stocks will outperform growth stocks for years to come. Much of their…
Planning With Cryptocurrency–Partnership, Corporations, and Tax Free Treatment
Planning With Cryptocurrency–Partnership, Corporations, and Tax Free Treatment Planning with Cryptocurrency. In my previous articles, I covered how cryptocurrency is taxed, hard and soft forks, and minimizing the tax effects of cryptocurrency transactions. This article addresses how you can diversify risk by contributing your cryptocurrency to a partnership or corporation in exchange for an interest…