Tax Analysts Blog

Friday, December 19, 2014
You've heard it a thousand times: The United States has the highest statutory corporate tax rate in the world. No surprise, then, that everybody wants to lower it. President Obama's framework for business tax reform would reduce the corporate rate from 35 percent to 28 percent. Departing House Ways...
Thursday, December 11, 2014
There's big news from across the pond. The U.K. government's Autumn Statement (formerly known as the pre-Budget report), released December 3, promises to change how multinational corporations will be taxed – and offers a cautionary tale for would-be U.S. tax reformers. Britain will introduce a ♪ ...
Friday, November 21, 2014
Nations ask much of their taxpayers and revenue systems. That is true for economic superpowers as well as struggling economies. Yet there's a widely shared perception that revenue systems around the world are often ill-suited to the demands placed on them. The need for structural reform and moderni...
Friday, November 14, 2014
"I am shocked, shocked to find there is gambling going on in here!" Thus spoke Captain Louis Renault moments before receiving his roulette winnings in Casablanca. Throughout the film, Renault straddles the blurred lines between rational self-interest, nationalistic loyalty, and institutionalized co...
Thursday, November 6, 2014
Apple Inc. has been in the news lately, and for reasons unrelated to CEO Tim Cook's personal revelations. The disclosures we're focused on are of an economic nature. Last week Apple submitted its latest filing to the SEC, SEC Form 10-K, detailing the company's financial profile for the fiscal year...
Friday, October 31, 2014
Facebook is having an interesting couple of weeks. I'm not talking about CEO Mark Zuckerberg conducting interviews in Mandarin Chinese at Tsinghua University. Nor am I talking about Zuck donating $25 million to help fight the Ebola outbreak in West Africa. No, the focus here is on profits, taxes, a...
Friday, October 24, 2014
Here in America, tax collectors know when you earn interest on your bank deposits. That's because U.S. banks are obliged to collect such information and report it to the IRS. This makes it impractical for would-be tax evaders to purposefully underreport their interest income for tax purposes. They'...
Thursday, October 16, 2014
We've now had ample time to absorb the new rules intended to make corporate inversions less attractive. So are they working? Have prospective invertors abandoned their tax minimization strategies? Thus far the evidence is mixed: Ohio-based Steris Corp. will forge ahead with its planned acquisition...
Friday, March 8, 2013
There is a public opinion poll for just about everything these days. I recently stumbled across a U.K. poll on corporate taxes and morality. Here we have two subjects that don't necessarily seem connected ... or are they? In the survey 66% of respondents said tax avoidance was immoral. The poll wa...
Tuesday, March 5, 2013
Sometimes big things have small beginnings. Back in 2010 Congress approved the Dodd-Frank Wall Street Reform Act, which included a two-page addendum known as the Cardin-Lugar Amendment (section 1504 of Dodd-Frank). Strictly speaking, the amendment is not a tax law. It's not contained in the Interna...
Friday, March 1, 2013
The federal income tax turns 100 years old this year. Landmark anniversaries are useful occasions for both reflection and critical analysis. It was in that spirit that Tax Analysts recently convened a policy forum at the National Press Club which openly questioned the income tax's future role as ou...
Tuesday, February 26, 2013
If you saw the SOTU address earlier this month, you heard President Obama renew his plea for a 'market based' solution to our climate change crisis. That comment triggered a heated policy discussion among my environmentalist friends. What does a tax guy say when folks ask about the cap-and-trade (C...
Friday, February 22, 2013
It seems that Italy's Silvio Berlusconi is perpetually under criminal investigation for assorted malfeasence. Over the years, the litany of accusations against him has included tax evasion, bribery, perjury, obstruction of justice, jury tampering, and paying for sex with an under-age female known a...
Tuesday, February 19, 2013
If the cover of this week's edition of The Economist is to be believed, there are about 50 tax havens around the world that have soaked up an estimated $20 trillion in concealed private wealth. The magazine's cover photo includes images of a sandy beach, palm trees, and a grinning solitaire figure...
Friday, February 15, 2013
The departing Secretary of the Treasury, Timothy Geithner, had a tax problem stemming from his employment at the International Monetary Fund. As you may recall, he forgot to pay those pesky social security and Medicare taxes. The incident was a major embarrassment, but it did not disqualify him fro...
Tuesday, February 12, 2013
Ever dream of driving a $200,000 Ferrari around the Amalfi coast? Me too. But ask an Italian taxpayer and their response might include a warning — be careful what you wish for! That's due to the Italian government's bold new tactic for reducing the country's tax gap. The tactic has a name, reddito...
Friday, February 8, 2013
It's Friday afternoon and we're catering to the prurient interests. I apologize in advance. A CBS news affiliate is reporting that an Oregon man has filed a lawsuit against the federal government claiming he was forced to have sexual relations with an IRS agent against his will. We're not making th...
Tuesday, February 5, 2013
How would you feel about a former U.S. president leaving the country to run a highly profitable business on foreign soil? Let's say it's an actual change in long-term residence, not just a temporary sojourn. Would your response differ if the motivation for the departure was tax minimization? The Fr...
Friday, February 1, 2013
Cinema aficionados will remember that characters from the popular 2006 film, The Devil Wears Prada, were inspired by actual people. Meryl Streep's portrayal of a sassy fashionista was based on Anna Wintour, the editor-in-chief of Vogue magazine. Wintour is a naturalized U.S. citizen who was born in...
Tuesday, January 29, 2013
Like other nations, France is cracking down on offshore tax evasion. The policy makes a lot of sense. Rather than raise taxes on people or introduce new taxes, would it not be preferable to collect all the taxes that are already due and owing under current law? One bump along the road is that you c...