Monday, August 5, 2013

Obama plans tax simplification

Before leaving on a five-week recess, the House voted for the 40th time to repeal the Patient Protection and Affordable Care Act (PPACA) (P.L. 111-148). It also passed legislation to protect citizens from the IRS and other federal agencies

President Obama, meanwhile, proposed a grand bargain that would reform the corporate tax code and create new tax incentives for manufacturers to bring jobs back to the U.S., along with tax credits to attract new investment.
 The president also announced his nomination of John Koskinen as the next IRS commissioner. The Service released final and proposed regulations regarding guidance on certain transfers of property from a C corporation to a regulated investment company (RIC) or a real estate investment trust (REIT), mixed straddles and expense allowances.
President Obama on July 30 called for pro-growth tax reform and a jobs package that would raise revenue to support much-needed investment in modernizing the nation’s infrastructure, create new manufacturing hubs and provide job training for workers as the country’s industries transition to new technology. Obama said he is willing to simplify the tax code and create new tax incentives for manufacturers to bring jobs back to the U.S., along with tax credits for communities plagued by plant closures to attract new investment. Baucus and House Ways and Means Chairman Dave Camp, R-Mich., released a joint statement shortly after the speech lauding the president’s plan. The two taxwriters are working to assemble tax reform legislation before the end of 2013.
. Senate Majority Leader Harry Reid, D-Nev., said following the meeting that all members of his caucus are on the same page as the president on the subject of his grand bargain. 
The president’s new approach would couple lower corporate tax rates with raising revenue to invest in modernizing the nation’s infrastructure with job-creating measures such as road and bridge construction, worker training programs and manufacturing incentives.
President Obama has announced his intention to nominate John Koskinen for the next commissioner of the IR. Koskinen, age 74, formerly served as the nonexecutive chair of the Federal Home Loan Mortgage Corporation (generally known as Freddie Mac) after the housing crisis, from 2008 to 2011, and as the interim chief executive officer in 2009.

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