Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: November 11, 2014
The Firm
201-896-4100 info@sh-law.comThe 2014 midterm elections have come and gone, leaving the Republicans in control of both the House and Senate. In this new environment, is meaningful corporate tax reform a realistic possibility?
According to the Washington Post, the Obama administration is hoping that the now more secure Republican party will be willing to work with him on a variety of issues. Notable among these is tax reform and infrastructure spending – issues that are intrinsically linked in the current environment.
There are two major obstacles to accomplishing tax reform, according to the Brookings Institute. The first is the disagreement as to where cuts to corporate tax expenditures and interest deductions should be made. By and large, this is a disagreement within the business community. Because it is generally accepted that any tax reform will have to be revenue neutral, arguments surrounding corporate base broadening to support rate reductions are likely to play a major role.
The treatment of corporate revenue from foreign sources is the second major point of contingency. Republicans would like to implement a territorial system that would only tax revenue generated in the United States. This would dramatically reduce revenues from this tax, but Republicans argue that it would allow business owners who are currently stashing foreign-generated revenue in subsidiary companies to invest this money in the U.S. The left would prefer to implement a true worldwide system that would tax the income of U.S. multinationals wherever it is earned and deduct costs wherever they are incurred. Both sides agree that the hybrid system is a clumsy middle ground.
Zachary Goldfarb with the Washington Post noted that there is some room for compromise. In particular, the sequester cuts coming 14 months from now could potentially motivate Republicans to work with the president in order to avoid defense cuts. However, this wouldn’t necessarily mean that either side would get more than the aversion of spending cuts that weren’t intended to be made in the first place. It wouldn’t mean the tax cuts that the right wants or the domestic investment that Obama wants.
If you are looking to find out how corporate tax reform can affect your estates please contact a Scarinci Hollenbeck attorney to discuss your options.
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!