Last Updated Dec 9, 2015 5:09 PM EST Democratic presidential candidate Hillary Clinton is calling on Congress to stop corporations from offshore mergers that cut their tax bill, saying she'll take executive action as president, if necessary."The maneuvers powerful corporations are using to game the system and leave everyday taxpayers holding the bag are just offensive," Clinton said in prepared comments during a campaign stop Wednesday in Waterloo, Iowa. "Inversions by Pfizer and other companies, plus related loopholes, will cost American taxpayers more than $80 billion in revenue over the next 10 years. That's money we should be investing here at home."Clinton called out out Pfizer (PFE) after the New York-based drug manufacturer last month unveiled a $160 billion merger with Allergan (AGN) in an acquisition that would send one of the largest U.S. corporations -- or at least its main executive offices -- to Ireland, where Allergan is based.By decamping overseas, Pfizer could get to … [Read more...] about Hillary Clinton says no to corporate tax inversions
Carl Icahn says he's investing $150 million to start a super Pac to promote corporate tax reform. In a letter sent to members of Congress Wednesday, the billionaire investor said lawmakers need to be held accountable for gridlock that he says is keeping Congress from passing legislation to "immediately stop so many of our great companies from leaving our country." The culprit are "corporate tax inversions," which have U.S. companies merging with, or being purchased by, foreign companies, said the financier, who has been touted by Republican front-runner Donald Trump as a potential Treasury Secretary or other emissary in a Trump administration. The money Icahn is committing "will be more than enough to make voters fully aware of the horrible consequences that will ensue if Congress fails to pass legislation." The problem, he argues, can be solved by passing international tax reform that is outlined in bipartisan legislation to fund U.S. highways. … [Read more...] about Carl Icahn to fund super PAC to push corporate tax reform
Taxes may be inevitable, but how businesses and workers react to the tax code isn't always predictable. Take President Donald Trump's pledge this week to cut corporate taxes to 15 percent from their current 35 percent. In a speech in Missouri on Wednesday, Mr. Trump said a lower business tax rate would not only create jobs, but raise wages and help the average worker. "We must reduce the tax rate on American businesses so they keep jobs in America, create jobs in America and compete for workers right here in America," he said. "Because when businesses compete for labor, your wages will go up." While Mr. Trump's speech was billed as laying the groundwork for tax reform later this year, his proposal was short on details, which experts say makes it difficult to gauge how his plan might work. Yet on the face of it, a drastic cut to corporate taxes may not provide the type of benefit to the middle-class worker that Mr. Trump suggests. "It's the old trickle-down economics: If we … [Read more...] about Can Trump’s corporate tax cuts help the middle class?
OKLAHOMA CITY — Public utility regulators from Oklahoma to Massachusetts are considering lowering the rates that homeowners and businesses pay for electricity and natural gas after a federal tax overhaul signed into law by President Donald Trump reduced the corporate income tax rate by 14 percentage points. The tax overhaul that went into effect Jan. 1 lowers the highest corporate income tax rate from 35 percent to 21 percent. Now, regulators and consumer groups such as AARP are demanding that the rates consumers pay be rolled back. Utilities are allowed to incorporate federal income tax obligations into the rates they charge customers. Exactly when and where consumers might see savings remains to be seen as regulators look into the matter. Oklahoma Attorney General Mike Hunter estimates five public utilities operating in the state will save at least $100 million a year. In Montana, regulators estimate utilities will save tens of millions of dollars a year in taxes. In Maryland, … [Read more...] about Some utility rates could go down after U.S. corporate tax cuts
When Apple's Tim Cook appeared before the Senate this week, many observers were expecting the CEO to be grilled by outraged senators about how his company has avoided paying billions in U.S. taxes by moving parts of his business to Ireland. That's not how it went down. A day after a congressional panel released a scathing report, accusing Apple of a massive tax-dodging scheme, the Apple CEO vigorously defended Apple's tax structure, testifying that he not only followed tax laws, he also followed "the spirit" of tax laws. Cook then managed to turn the discussion on its head by scolding the U.S. government for its outdated tax system with an outrageously high corporate tax rate. Cook also pointed out that the U.S. government could learn a thing or two from Apple's philosophy: "Apple has always believed in the simple, not the complex," testified Cook. "In this spirit, Apple...suggests to the Subcommittee today to pass legislation that dramatically simplifies the U.S. corporate tax … [Read more...] about Apple, Ireland, and the corporate tax rate problem