US multinationals will follow new reporting rules. Treasury and the IRS released final regulations yesterday that require the companies to report income and taxes paid on a country-by-country basis. The rules apply to US-based firms with units that report annual revenue of at least $850 million. They are intended to align with recommendations of the Organization for Economic Cooperation and Development’s Base Erosion and Profit Shifting project, designed to ensure companies do not avoid taxes.
The Ryan tax plan would add $4 trillion to the debt over 10 years. So says the labor-funded Citizens for Tax Justice. The group figures that 60 percent of the benefits of the individual tax cuts would go to the highest income 1 percent. CTJ estimated that Donald Trump’s plan would cut taxes by $12 trillion.
Puerto Rico can restructure its debt. President Obama will soon sign the bill passed by the Senate yesterday. The legislation will allow Puerto Rico to restructure $70 billion in debt and establish an outside control board to steer the island's troubled finances.
Missouri Governor Jay Nixon vetoes tax breaks. The Democrat nixed the GOP legislature’s effort to give tax breaks to farmers and businesses. He said the state’s $27.3 billion budget could not cover the $60 million in lost revenue and warned he’d have to freeze spending in other programs to pick up the cost.
About that sales tax cut passed by New Jersey’s assembly… Governor Chris Christie—potential running mate of Donald Trump—wants to cut the state’s sales tax in exchange for a 23 cent-per-gallon gas tax increase to fill the state’s transportation fund. The state senate plans to vote on the measure today. According to Christie, the bill would cost the average New Jersey taxpayer $200 more a year in gas taxes, but save $465 on sales taxes. But the sales tax cut would blow a $1.6 billion hole in the state’s general fund by 2019. Christie does not explain how that hole might be filled.
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