DreamHost

TARGET: Save with the Red Card!

Subscribe

Enter your email address:

Delivered by FeedBurner

Green Apps

ITUNES TV AND MOVIES

Categories

Burpee Gardening

Whole House Water Filter

PINGO

Soft Phone Banner

RE USE IT!

ReUseIt.com

Natural Mosquito Control

10% Off Mosquito Magnet Accessories - Use Code MMACCTEN

FTC Disclosure

Green Reflection may receive remuneration from the advertisers on this site.

News Analysis: G.O.P. Squirms as Trump Veers Off Script With Abuse Remarks

NYT

Read more: News Analysis: G.O.P. Squirms as Trump Veers Off Script With Abuse Remarks

In a Complex Tax Bill, Let the Hunt for Loopholes Begin

The provision, known as the domestic production activities deduction, gave companies a tax break on income they earned from making things in the United States. It was intended to help American manufacturers, which were struggling to hold their own against competition from overseas.Then a raft of other industries heard about the rule as it was being devised and fired up their lobbying machines. Suddenly, everyone became a manufacturer.Movie studios got the break because they produced films, and tech giants won it, too, for making computer software. Construction companies got it for making buildings, and so did engineers and architects for designing them.Starbucks hired lobbyists to make the case that it, too, was a producer, because the company roasts coffee beans. Congress added language that allowed coffee shops to deduct a percentage of every cup sold if it was made with beans they roasted off site. It became known as the Starbucks footnote.“This has been a boondoggle tax expenditure,” said Robert J. Shapiro, a former Commerce Department official who founded the economic advisory firm Sonecon. “It is a political lesson. You are always liable to create tax loopholes that grow.”The government initially estimated that the 2004 law would cost a net $27.3 billion from 2005 through 2014. […]

U.S. Tax Bill May Inspire Cuts Globally, While Fueling Trade Tensions

“It’s a huge incentive to governments around the world who want to see more investment to be part of that,” said Andrew Mackenzie, the chief executive of the mining giant B.H.P. Billiton, which has its headquarters in Australia and major operations in North and South America. “They will have to follow suit.”Corporate rates were already on a downward trajectory. Many countries have used low taxes as an advantage over the United States, which offers a huge domestic market, plentiful venture capital and relatively light workplace regulation.“There will be pressure for a new round of lowering corporate taxes,” said Stefano Micossi, the director general of Assonime, an Italian association of publicly listed companies.China, a frequent target of Mr. […]

Heading Toward Tax Victory, Republicans Eye Next Step: Cut Spending

And it was passed along sharply partisan lines, offering nothing to Democrats, and leaving them with no obligation or incentive to negotiate cuts to Medicare, Medicaid and Social Security, the entitlement programs that are driving up spending, but are also the pride of the Democratic Party.For his part, Mr. Trump spent his campaign promising not to cut Medicare and Social Security. And Republicans will probably find, as they did when they failed to repeal the Affordable Care Act, that the public rises up to defend the programs they are trying to cut. […]

The Republican Senators Who Might Oppose the Tax Bill

NYT

Go here to see the original: The Republican Senators Who Might Oppose the Tax Bill

Wealth Matters: Tax Cuts for Small-Business Owners? It’s Complicated

In other words, the House bill may seem like a tax cut for small businesses, but it is not likely to bring much relief to many of those owners, and it is certainly not comparable to what was proposed for large corporations. And some professions, like consultants, lawyers, doctors and other professional services companies, are not even eligible for the lower pass-through rate.“What’s really going to happen is, people are going to change their behavior based on this tax act,” Mr. Reitmeyer said, like rethinking their business tax structure.The House bill says that up to 30 percent of business income can be taxed at the lower 25 percent rate, with the rest at the personal income tax rate. At the highest level, this is a blended tax rate of 35.22 percent, at least for businesses that qualify. That is a far cry from the 20 percent proposed for corporations.The Senate proposal, which is wending its way through the committee process, offers the possibility of a deduction of business income of up to 17.4 percent. But it still has hurdles: This week, it lost one Republican vote, when Senator Ron Johnson of Wisconsin opposed the different treatment for corporations and pass-through entities.What becomes of the two bills when they get reconciled is going to determine whether small-business owners will pay less in taxes. But it will also determine what resources they will have to invest in their businesses and still maintain their lifestyles.The savviest business owners will begin by calling a sophisticated accountant or tax lawyer […]

Accounting ‘Gimmicks’ in G.O.P.’s Tax Overhaul Mask Higher Cost, Deficit Hawks Say

Such sleights of hand in accounting are more prevalent in the Senate plan, which makes many of its cuts temporary or delays their enforcement. For instance, the Senate bill delays the corporate tax cut, which will fall to 20 percent from 35 percent, by one year for savings of about $100 billion. It also saves about $240 billion by making the individual income tax cuts “temporary” and setting them to expire in 2025.Other tax breaks are phased in slowly or phased out. Businesses are allowed to fully expense only their capital investments, including equipment purchases, through 2022. And, beginning in 2024, the ability to carry net operating losses forward would be limited as a percent of taxable income. In 2026, research and experimental expenditures would have to be written off gradually, or amortized, rather than immediately deducted, which reduces the revenue hit to the federal budget.According the nonpartisan Committee for a Responsible Federal Budget, the real cost of the Senate legislation that the Joint Committee on Taxation says will cost $1.41 trillion over a decade would be $2.2 trillion if all the temporary changes were made permanent. The group estimates that the nation’s debt, which has surpassed $20 trillion, would exceed the size of the economy by 2028 under the plan — a level the United States has not reached since World War II.Republican leaders in Congress and the Trump administration have acknowledged the budget maneuvers, saying they expect the temporary tax cuts to stay in place.“As a result of the reconciliation process and scoring and the Byrd Rule, there are certain parts of this that expire,” the Treasury secretary, Steven Mnuchin, said on CNBC on Friday. “But we have every expectation that down the road that Congress will extend them.” The Byrd rule refers to restrictions put in place by former Senator Robert C. Byrd of West Virginia that prevent legislation that adds to the deficit in the long-term.To deficit hawks, underselling the true cost of tax cuts is counterproductive and potentially dangerous for the economy.Newsletter Sign UpContinue reading the main storyThank you for subscribing.An error has occurred. Please try again later.You are already subscribed to this email.View all New York Times newsletters.“The gimmicks not only damage the bill’s fiscal credibility but damage the bill’s objectives at the same time,” said Michael A […]