President Barack Obama is planning a tax increase on U.S. multinational businesses that would add a total of $276 billion to the U.S. budget, according to The Washington Post.
The 2015 plan includes six new measures to plug leaks in the tax code that multinationals are using to avoid paying the 35 percent federal corporate tax rate imposed by the U.S. government – the highest in the industrial world.
Both sides of the debate want changes to the tax code. Corporate executives have been arguing for years for a reduction in the tax rate, but those in favor of the President’s plan argue that most multinationals don’t pay the 35 percent rate anyway, by exploiting loopholes in the tax code. GE, for example, reported that it only paid an effective tax rate of 4.2 percent in it’s most recent annual filing, according to the news source.
MSN Money explained that the plan isn’t likely to find any traction in a congress that has trouble agreeing even on general tax policy, let alone specifics. Manal Corwin, national leader of the international tax practice at KPMG LLP in Washington, explained to the news source that, in actuality, the plan is intended to set down a marker in the national tax debate.
“I don’t know that anybody’s predicting that we’re suddenly going to see tax reform happen,” said Corwin. “There are certain themes that seem to be repeating themselves.”
Under the current tax code, U.S.-based multinationals face a full 35 percent tax rate for income they make around the world after the tax they pay to local governments. As other countries have reduced their tax rates, businesses have stockpiled an estimated $2 trillion in untaxed, offshore profits. While some feel that the U.S. should lower its tax rates in order to encourage businesses to repatriate their money, others feel that the loopholes through which these businesses are avoiding the tax should be closed.
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Running a business in New Jersey and New York means operating within one of the most legally complex environments in the country. From the moment you form your company to the day you sell it, and every contract, hire, dispute, and transaction in between, business law is present in decisions that look, on the surface, […]
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!
