Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: March 24, 2014
The Firm
201-896-4100 info@sh-law.comWhile many reliable sources in Washington are saying that the odds of either President Obama’s corporate tax reform bill or Republican Camp’s bill getting passed this year are slim to none, some states aren’t waiting to conduct their own reform. According to Pew Reports, a number of states are targeting offshore “tax havens” in new litigation that will allow them to recoup the more than $20 billion that they lose to the technique each year.
By shifting income to offshore subsidiaries in places like the Cayman Islands, Bermuda and a number of other tax havens, companies are able to avoid paying both state taxes and federal taxes in the U.S., where the marginal rate is significantly higher, according to the news source. While technically these companies are required to pay U.S. taxes when they repatriate the money, there is currently no limit on how long they can defer repatriation. This may serve as a disincentive for investing in U.S. labor, construction or goods, because the money can only be spent abroad.
Maine is now looking at litigation that will mirror tax law enacted in Montana in 2004, according to Pew Reports. The bill being considered would name 38 known tax havens and attempt to put a stop to incentives to move money to them.
Robert Pozen, a reporter with The Wall Street Journal, has a different plan for recovering the tax on the estimated $2 trillion held abroad. He suggests a transitional tax rate on foreign profits of 12 percent, which would lead into a foreign “competitiveness” tax of 17 percent, which would only come into effect after local international taxes. For example, if local taxes amounted to 15 percent, for example, the tax owed to the U.S. would be only 2 percent.
There are a number of ideas present in Washington, D.C., and in state governments as to what should be done about the corporate tax problem, but it is unlikely that the U.S. will see a change any time soon.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!