June 2010 Archives



Peter G. Peterson Institute's Misguided Defense of Offshore Tax Loopholes

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The Peter G. Peterson Institute has come out against provisions in H.R. 4213 that would prevent multinational corporations from abusing foreign tax credits. The two-page complaint written by Peterson’s Gary Hufbauer and Theodore Moran attempts to defend practices by corporations that are indefensible.

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Closing the "John Edwards" Loophole Helps, Not Hurts, Small Business

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The tax extenders bill (H.R. 4213) currently pending in Congress contains a provision to close what is commonly known as the “John Edwards” loophole, which allows some shareholder-employees of “S corporations” to avoid paying the Medicare payroll tax on their earnings.  An amendment offered by Senators Olympia Snowe (R-ME) and Mike Enzi (R-WY) would remove this reform and preserve the loophole. This amendment should be rejected. Despite what these lawmakers may believe, closing this loophole will actually help most small businesses, which are currently subsidizing the minority who abuse it to avoid payroll taxes.

Read the report.

Investment fund managers have put forth outlandish arguments in defense of the "carried interest" loophole that allows them to pay taxes at lower rates than their secretaries. These arguments, which are gaining traction among some Senators, should be dismissed.

Read the report.



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