Big companies have long capitalized on business-friendly laws to minimize their tax liability. Now, President Trump's tax law is making it even easier for profitable corporations to reduce what they owe the government. Case in point: Companies ranging from internet giants Amazon and Netflix to industrial bellwethers General Motors and U.S. Steel could end up paying as little as $0.00 in federal income tax this year despite recording hefty profits. Some companies will also collect large tax rebates.Defenders of the corporate cuts under the tax law that took effect this year, which lowered the rate companies pay to 21 percent from from 35 percent, contend they will plump profits, drive investment and boost economic growth. Opponents say the drop in corporate income tax revenue will grow the deficit and make it harder to fund public programs. There is no suggestion that companies seeing a dramatic dip in their tax obligations are doing anything against the law -- indeed, it is the … [Read more...] about Some of America’s biggest companies paid little to no federal income tax in 2018
Foreign earned income tax credit
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | For Democrats Aiming Taxes at the Superrich, ‘the Moment Belongs to the Bold’ Supported by ByPatricia Cohen and Maggie Astor Feb. 8, 2019 The only thing more startling than the flurry of tax proposals Democrats have unveiled in recent weeks is the full-throttle response they’ve gotten from the public. Representative Alexandria Ocasio-Cortez suggested a near doubling of the top income tax rate. Senator Bernie Sanders, who caucuses with the party, introduced a bill to raise taxes on dynastic heirs. And Senator Elizabeth Warren proposed a levy that has never existed in the United States: a wealth tax, assessed annually on America’s biggest fortunes. The soak-the-rich plans — ones that were only recently considered ridiculously far-fetched or political poison — have … [Read more...] about For Democrats Aiming Taxes at the Superrich, ‘the Moment Belongs to the Bold’
Danica Coto Associated Press Published 9:33 PM EST Dec 10, 2018 San Juan, Puerto Rico – Puerto Rico’s governor signed a bill on Monday to overhaul the U.S. territory’s tax laws in a bid to attract foreign investment and help workers and some business owners amid a 12-year recession. The bill creates an earned income tax credit, reduces a sales tax on prepared food and eliminates a business-to-business tax for small to medium companies, among other things. Officials say the bill represents nearly $2 billion in tax relief at a time when the island is struggling to recover from Hurricane Maria and restructure a portion of its more than $70 billion public debt load. “There’s still a lot of work to be done to completely transform the tax system … but we see it as a good first step,” said Cecilia Colon, president of Puerto Rico’s Association of Public Accountants. Gov. Ricardo Rossello said the earned income tax credit will result in … [Read more...] about Puerto Rico overhauls tax laws to help workers, businesses
Democrats who control the state Legislature on Monday introduced a $36.2 billion budget that would raise taxes on New Jersey's very largest corporations to the highest level of any state. They also vowed to move forward with the spending plan even though Gov. Phil Murphy said he'd veto it earlier in the day. The intensified hostility between the governor and state Legislature pushes New Jersey closer to the possibility of a second state government shutdown in two years. A balanced budget needs to be signed by June 30. The "two houses are unified behind a budget," state Senate President Stephen Sweeney said at an afternoon news conference at the Statehouse in Trenton. He assailed Murphy for being unwilling to compromise and described a recent meeting with the governor as a take-it-or-leave scenario. "I was told, 'It's my budget. I like my budget. The things I'll cut, I already cut. The things on the cutting room floor are on … [Read more...] about Raise the sales tax? The business tax? Dueling Democratic budgets bring N.J. closer to a shutdown.
On Wednesday, former car czar Steven Rattner testified before the House Ways and Means Committee. He began his prepared remarks by telling the committee members what they should have done on tax reform:"1) It should be deficit neutral, given projections for rising fiscal gaps."2) It should be fair and certainly not diminish the progressivity of our system."3) It should be growth and investment enhancing."4) It should improve our international competitive position."Now, one year later, we know that what was ultimately passed failed to address most of these tests."On the debt, Rattner explained, "According to the Congressional Budget Office, the fiscal gap could total as much as $2.7 trillion over the next 10 years. Supporters counter that added economic growth of 0.4% percent per year would offset the cost. But every reputable forecast of which I'm aware puts the likely incremental growth at a negligible amount." As for the fairness issue, he argued that "it is not fair; just 16% of the … [Read more...] about The tax plan didn’t do what it promised, but here’s what might