Lawmakers and White House in Discussions to Overhaul Multinational Corporate Tax System
July 22, 2015
Top lawmakers and the White House are in the early stages of discussing an ambitious overhaul of how the U.S. taxes its multinational firms.
• Top lawmakers and the White House are in the early stages of discussing an ambitious overhaul of how the U.S. taxes its multinational firms. Topics being discussed include whether to eliminate the U.S. system of taxing companies on their worldwide income, what safeguards to adopt to prevent future abuses, and whether to provide special tax treatment for intellectual property. The talks, part of an effort to find funding for a long-term highway bill, are preliminary, but all sides acknowledge that an overhaul could raise revenues for highways by imposing a one-time tax on foreign corporate earnings sitting offshore. Overhauling the U.S. system for taxing multinational businesses has been a priority for Republicans, as well as some Democrats, and many are realizing that combining it with highway funding may be the best way to achieve both. [WSJ]
• In the last three months, at least a half-dozen agents on the online security squad of the New York office of the Federal Bureau of Investigations have left the federal government for more lucrative jobs in the private sector. The flurry of departures is beginning to concern top law officials at the F.B.I., who are struggling to figure out ways to recruit younger agents and retain veteran investigators. The exodus from the F.B.I.’s office began in earnest over a year ago and is likely to continue for the near future, even as attacks on networks and thefts of government data grow. [NYTimes]
Economic Indicators & News
• Existing home sales were very strong in June, up 3.2 percent to a higher-than-expected annual rate of 5.49 million. Existing home sales tally the number of previously constructed homes, condominiums, and co-ops in which a sale closed during the month. Existing homes account for a larger share of the market than new homes and indicate housing market trends. Supply has been tight, at 5.1 months in the May report, which is likely to bring homes into the market. The June numbers are the best since the bubble days of February 2007 and follow May’s revised 4.5 percent jump. [Bloomberg]