While 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..
While 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.
Photo by Anastasia Taioglou on Unsplash
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.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
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!
