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Blog Profile / Business in The Beltway

Filed Under:Business & Finance
Posts on Regator:381
Posts / Week:2
Archived Since:February 28, 2011

Blog Post Archive

Pass-Through Firms Report $800 Billion In Net Income, Can’t Be Ignored In Business Tax Reform

is going through another one of its periodic calls for tax reform. But new research by my Tax Center colleague Joe Rosenberg shows just how hard it is to separate taxation from the individual tax code. And it should serve as a warning to those who think Congress can enact corporate tax reform that ignores these [...]

The Public Wants Clear Rules About Campaign Giving Through Tax-Exempts. Is It Possible?

A poll released today by the conservative Hudson Institute and the liberal group Public Citizen finds that nearly 9 in 10 voters surveyed favor clear rules that define political activities by non-profit tax-exempt organizations. The public’s desire for clarity is not surprising, given the amount of undisclosed campaign money that is flooding through tax-exempt 501(c)(4) [...]

Treasury’s New Rules May Slow, But Won’t Stop Corporate Tax Inversions

Will Treasury’s new rules stop the wave of corporate tax inversions? No they won’t. Treasury Secretary Jack Lew acknowledged as much when the agency proposed the curbs yesterday. Will they slow the practice? Perhaps, but even that is not certain. In a perverse way, Treasury’s most effective weapon may have been ambiguity. Once the Administration announced [...]

Does the Export-Import Bank Make or Lose Money?

Suppose your aunt decides to start a business making pizza ovens. She will design and build the ovens, and her daughter will manage operations. A bank is ready to lend her $100,000 to get started, but it wants someone to co-sign and be on the hook if she misses any payments. She offers to pay [...]

Treasury’s Lew Says Anti-Inversion Decision Will Come Soon, But Offers No Hints About What Or When

In a speech today at the Tax Policy Center, Treasury Secretary Jack Lew said the agency will decide “in the very very near future” how it will respond to the recent wave of tax-motivated corporate inversions.  Lew strongly urged Congress to curb the practice on its own, but suggested Treasury might move administratively if lawmakers [...]

CBO Says Federal Tax Revenues Will Rise Because Of Higher Individual Income Taxes

Last week’s Congressional Budget Office fiscal update largely focused on the dangers of rising spending on health care, Social Security, and interest on the debt. But it also projected a significant increase in federal revenues, almost entirely due to a big bump in individual income taxes. CBO projects that individual tax revenue will climb well above its [...]

How Much Would An Individual Tax Rate Cut Add to the Deficit, and Who Would Benefit?

Reducing tax rates is a guiding principal of most tax reform plans. Even Democrats who see reform partly as a tool to boost revenues agree that some money generated by eliminating tax preferences ought to go to rate reduction. But how much does Treasury lose when Congress reduces individual tax rates, and which taxpayers benefit the [...]

Is Treasury About to Curb Tax Inversions on Its Own?

The Treasury Department put out the word that Secretary Jack Lew is considering regulatory curbs on corporate tax inversions, a step that may be intended to increase pressure on Congress to act once it returns from its summer recess in September. The matter of how much authority Treasury has to limit inversions has generated its own [...]

How REIT Spinoffs Will Further Erode the Corporate Tax Base

While Congress has been obsessing about tax inversions, it turns out another—potentially more important–tax avoidance technique is getting increased attention from the business community: Spinning off tangible assets into Investment Trusts (REITs). Show More Summary

What Ronald Reagan Didn’t Say About the EITC

I like the Earned Income Tax Credit (EITC). It encourages work and allows millions of low-wage workers and their kids to escape a life of poverty. Democrats support it as a critical part of the safety net. Republicans back it because it rewards work and family. Just last week, House Budget Committee Chairman Paul Ryan (R-WI) endorsed President [...]

Are Tax Inversions Really Unpatriotic?

President Obama and many congressional Democrats argue that U.S.-based multinational firms are being unpatriotic by moving their corporate addresses overseas in order to reduce their. Obama even implied they are “corporate deserters.” These are powerful, emotionally-charged allegations. Show More Summary

Is It Time To End The Highway Trust Fund Fiction?

Congress is in the midst of another Perils of Pauline political showdown: This time the drama is over how to finance the highway trust fund, which will be unable to pay its bills in a couple of weeks. House Republicans have cooked up one set of gimmicks to keep the money flowing for a few [...]

The Federal Reserve Is Not Ending Its Stimulus

Yesterday, the Federal Reserve confirmed that it would end new purchases of Treasury bonds and mortgage-backed securities (MBS)—what’s known as quantitative easing—in October. In response, the media are heralding the end of the Fed’s stimulus: “Fed Stimulus is Really Going to End and Nobody Cares,” says the Wall Street Journal. “Federal Reserve Plans to End [...]

What The Hobby Lobby Case Really Means For Business: Nothing

Don’t be fooled by the 'slippery slope' argument: the case will change nothing about how businesses can operate.

The Strange Fruit of the House’s Bonus Depreciation Bill: Congress Would Subsidize Grapes But Not Blueberries

When the Ways & Means Committee sent the House a measure to make permanent extra-generous tax subsidies for firms that purchase capital equipment, I noted in passing that the bill included a provision extending “bonus depreciation” rules to fruit and nut trees. If I had read the bill more carefully, I would have noticed that while [...]

Why Walmart Should Follow Gap’s Lead And Raise Its Minimum Wage

Paying higher wages could help Walmart's business—and that of many employers.

A Failure Of Due Process At FERC

Nearly nine months ago, we began writing a law review article that described the erosion of due process and basic fairness in the Federal Regulatory Commission’s (FERC) enforcement process. Forty-nine pages and 270 footnotes later, our article was published by the Law Journal on May 15th. The following week, on May 20th, the Senate held [...]

Don’t Turn Over IRS Debt Collections To Private Contractors

The latest example of why bipartisanship is not necessarily good: A bill proposed by senators Chuck Schumer (D-NY) and Pat Roberts (R-KN) to require the IRS to hire private debt collectors. The last time Congress made the IRS try this, the agency lost money. It was a terrible idea then and it is a terrible idea now. Schumer and Roberts slipped [...]

Why Proposed Rule To Increase Rail Freight Competition Would Hurt Railroads And Customers

Requiring railroads to allow another carrier on their rails to compete for freight business might lower prices for customers, but it will result in gross inefficiencies and reduce the amount of money available for capital expenditur...

Aereo And The Supreme Court Could Redefine The Digital Home

The court will have to decide if the service is selling the latest generation of rabbit ears or if it is more like a cable company, which needs to pay to retransmit television to its customers. The answer hinges on whether the transmission is public or private. Show More Summary

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