Taxes
There is a bit of political theater that plays out in Washington every few years—lawmakers from high-tax states storm the stage to defend the state and local tax (SALT) deduction, as though it were etched in the Constitution. The arguments run the gamut: from its ability to protect middle-class families, to its support for essential services, and the prevention of the dreaded “double taxation.” What they won’t say, however, is that it overwhelmingly benefits wealthy households, distorts federal tax equity, and props up state tax regimes that should have to answer to their own voters. So here is the relevant…
President-elect Donald Trump has tapped former Congressman Billy Long as Commissioner of the Internal Revenue Service (IRS). He announced the pick on Truth Social, writing: I am pleased to announce that former Congressman Billy Long, of the Great State of Missouri, will be appointed to serve as the Commissioner of the Internal Revenue Service (IRS). Billy brings 32 years of experience running his own businesses in Real Estate and, as one of the premier Auctioneers in the Country. He then served 12 years in Congress, because he “felt it was important for his constituents to have a Representative who has…
Is ESG the new EBIDTA? It’s starting to feel that way in corporate finance and tax departments, as growing global interest and increased uncertainty surrounding sustainability measures begin to demand more attention. Whether it’s the Corporate Sustainability Due Diligence Directive, the EU Deforestation Regulation, the global sustainability reporting standards introduced by the International Financial Reporting Standards’ International Sustainability Standards Board, or any number of state and local regulations, multinational businesses are staring down a litany of new reporting requirements addressing all aspects of environmental, climate, and human rights-related issues. The common bond in all of them: a direct link from…
The fate of President-elect Trump’s ambitious income tax agenda will be decided in large part by two critical, and related, issues: Trump’s tariffs and the extent to which Congress pays for what are likely to be trillions of dollars in income tax cuts. And both could be subject to intense behind-the-scenes battles—among Republicans. To understand why, you need to know a bit about the budget process: Because it normally takes 60 votes to pass legislation in the Senate, Trump and his narrow congressional majority will need to rely on the process known as budget reconciliation to pass much of his…
A controversial new law that requires reporting companies to report information to the U.S. government about who ultimately owns and controls them is dead—at least for now. A ruling out of the U.S. District Court for the Eastern District of Texas granted the plaintiffs a preliminary injunction, blocking the U.S. Department of Treasury from enforcing the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) across the country. The 2021 law has been under fire from consumer groups since at least 2022, though chatter about it has picked up significantly in the past few months. That’s because…
If you are a business owner who wants to maximize your tax savings on your 2024 income, check out the Solo 401(k) and the related limits and deadlines. Even if optimizing your retirement plan isn’t a top priority now, minimizing your tax bill will make reaching financial freedom much easier. Keep reading to see if now is the time to open a Solo 401(k) plan for your business. What Exactly Is A Solo 401(k)? A Solo 401(k) is a streamlined retirement plan specifically designed for a business with no employees beyond the owner (and perhaps their spouse). You can no…
In the latest In the Pages video, Alexandra Karadima, a senior tax manager based in Luxembourg, and Robert Goulder of Tax Notes discuss how artificial intelligence is changing international tax administration. In the Pages is a video series produced by Tax Notes. This transcript has been edited for clarity. Robert Goulder: Hello, I’m Bob Goulder, a contributing editor with Tax Notes. Welcome to the latest edition of In the Pages, where we take a closer look at the commentary in our print and online publications. Our topic for this week is the role of artificial intelligence in tax administration, and…
Year-end is always a key time for financial and tax planning with employee equity compensation and company stock. The results of the 2024 US election—Donald Trump’s second presidency and a Republican majority in Congress—have added some clarity on taxes but have also introduced areas of uncertainty. The longer-term outlook for the tax laws and the stock market remain key factors in year-end planning for employee stock options, restricted stock units (RSUs), employee stock purchase plans (ESPPs), and related holdings of company shares. Tax-Planning Outlook The Republican-driven Tax Cuts & Jobs Act (TCJA) will expire after 2025 unless it is extended…
Chances are that your inbox is full of reminders that today is #GivingTuesday. The day—which is always the Tuesday after Thanksgiving—made its debut in 2012. The day kicks off the giving season and is intended to celebrate generosity, more or less the opposite of the spending-heavy Black Friday and Cyber Monday that precede it. Charitable Giving Impact It’s worked. According to GivingTuesday, an independent nonprofit organization that shares a name with the day, the impact of Giving Tuesday in 2023 was a whopping $3.1 billion. Giving to U.S. charities was up, overall by the dollars, in 2023, according to an…
When Americans hear the term “expatriation,” they often think of renouncing U.S. citizenship. However, for U.S. tax purposes, expatriation also applies to long-term residents (green card holders) who surrender the green card after holding it for at least 8 of the past 15 tax years. A tax year is shorter than a calendar year and the green card holder will typically have a separate tax year at 2 events – when obtaining the card and when giving it up. As a result, it is easy to reach the 8-year mark. For both groups, leaving the U.S. tax system can come…
Elon Musk and Vivek Ramaswamy, who will head up President Trump’s Department of Government Efficiency (DOGE), say they want to radically simplify the federal tax code, which is a cesspool of complexity and corruption. At last count, it’s 16 million words and rising and is a deadweight on the economy. Trying to reform such a ghastly beast is hopeless. This episode of What’s Ahead makes the case for junking the tax code and replacing it with a simple, single-rate system: the flat tax. Follow me on Twitter. Send me a secure tip. Read the full article here