Taxes

Coburn reveals Wastebook 2014

Senator Tom Coburn’s “Wastebook” outlines the top “wasteful” federal projects that cost taxpayers billions of dollars.

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There may be fewer changes to the federal tax code this year than in 2013, but the handful that exist could still impact what you owe. Some, like the new health insurance tax credit, could put more jingle in your pocket, while the expiration of more than four dozen temporary tax breaks that Congress has …

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A planned $2.7 billion deal between pharma companies Salix and Cosmo, motivated in part by the opportunity to do a tax inversion, has fallen through. “There has been a change in the environment after we struck the deal,” Alessandro Della Cha, chief executive of Cosmo, told CNBC in a phone call. “The (U.S.) administration has …

New tax rules may lead Medtronic to restructure deal

Medtronic will likely restructure the terms of its Covidien acquisition after the U.S. Treasury Department introduced new rules aimed at curbing tax inversions.

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The U.S. government has been promising a crackdown on tax inversion deals for months. Yet the measures announced Monday may not be enough of a disincentive for companies like Pfizer or AbbVie, which are tempted by the savings involved in snapping up smaller foreign rivals and re-domiciling themselves to avoid America’s labyrinthine tax system. The new rules, aimed at “when …

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The recent exodus of U.S. companies fleeing the country to lower their tax bill has a lot of people wondering: Are corporations paying their fair share of taxes? That depends on where you live—and whom you talk to. As the developed world becomes more tightly knit, corporate taxes are going to play an increasingly important …

Administration & tax inversions

The U.S. treasury is taking steps to block U.S. companies from reorganizing overseas to avoid taxes. What power does the administration have over these tax inversions?

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The debate around “inversions”—the process of American companies buying foreign companies to access capital and lower tax rates overseas—has reached the dinner table. But while the debate escalates over the dozen or so companies that are pursuing this endlessly wonky and complicated legal loophole, there are dozens more loopholes that companies are jumping through here …

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Below are the 20 companies in the S&P 500 that reported 0% (or lower) effective tax rates during the second calendar quarter of 2014 according to USA Today:

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Tax inversions may be coming to the hotel industry. The practice, wherein a firm buys a foreign company so as to move its tax domicile, has been derided by President Barack Obama as unpatriotic, but that has not stopped a wave of U.S. companies from fleeing to less taxed countries. Now, The Wall Street Journal reports that activist hedge fund …

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Chiquita Brands is one of the companies that did a corporate "inversion" deal this year

A once-obscure tax dodge known as a corporate “inversion” is turning the debate over U.S. tax reform upside down. In an inversion, a U.S. company sets up or buys another company in a country with a lower corporate tax rate and then calls the new country home—thereby dodging U.S. taxes it would otherwise have had …

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President Barack Obama’s support of anti-inversion legislation only aims to put a patch on a larger problem: Corporate taxes in America are too high and the tax code needs to be overhauled. That’s the message from two CEOs interviewed on CNBC Thursday. “The current U.S. tax system puts U.S. companies at a disadvantage,” Eli Lilly Chief John …

David A. Grogan | CNBC
Treasury Secretary Jack Lew (l) talks with CNBC's Jim Cramer at the Delivering Alpha conference, July 16, 2014.

Congress needs to pass sweeping tax measures to keep companies from moving their operations overseas, Treasury Secretary Jack Lew said Wednesday. Speaking about so-called inversions, in which companies change their domiciles to other countries with more favorable tax structures than the U.S., Lew said action has to be taken soon. JPM’s Erdoes: Bond inflows ‘gives me great …

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The Apple store on Fifth Avenue in New York City.

Apple, Starbucks, and Italian car finance group Fiat Finance and Trade will come under the European Union (EU) spotlight with an investigation into how they avoided paying tax through using companies in Ireland, the Netherlands and Luxembourg. If these arrangements are found to have been in breach of EU law, the companies could be forced to …

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Nothing is more rewarding than making a donation to a worthy cause—except, perhaps, donating to a worthy cause and getting a tax deduction for it. While most donations stem from a desire to make a positive impact, there’s no denying that tax deductions are a big incentive—especially among the wealthy. In a study of high-net-worth …