UPDATE: JUNE 14, 2015
from JakDak:
The Senate Finance Committee chairman, Senator Orrin Hatch (R-UT), has established working groups to study different aspects of the tax system. These working groups are scheduled to report back to the committee by June 26.
Tax Policy Update
June 09, 2015[Interesting: NUMBER OF THE WEEK: 61. The number of countries that have signed on to implement the OECD’s multilateral agreement for the automatic exchange of tax information, in conjunction with the ongoing Base Erosion and Profit Shifting (BEPS) project. Although the U.S. has committed to implement the standard, it has not yet signed onto the formal agreement (the “multilateral competent authority agreement”), which lays out in detail what information will be exchanged, the timing and method of exchange, and how signatories will work together to ensure compliance. Signatories to the agreement will begin exchanging information as early as 2017. Additionally, the OECD released on June 8 its “Country-by-Country Reporting Implementation Package” developed under the BEPS Action Plan. Under the plan, which the Treasury Department has said it will implement for the 2016 fiscal year, multinational companies are required to aggregate and report information annually regarding where they do business, the global allocation of income, and amount of taxes paid, along with other information that will allow taxing authorities to more closely examine multinationals’ tax practices. The release of the package coincides with the 2015 OECD International Tax Conference in Washington, D.C., this week where OECD representatives are expected to review and discuss key initiatives under BEPS.]
SPOILER ALERT: Comprehensive Tax Reform Unlikely in 2015. In an interview last week, Senate Majority Leader Mitch McConnell (R-KY) outlined a busy legislative agenda between June and August recess: passing a highway bill, cybersecurity legislation, No Child Left Behind, and the Toxic Substances Control Act. Tax reform, however, is conspicuously missing from the list. “We’re certainly not going to be able to be doing big, comprehensive tax reform with this president,” McConnell said. Tax reform optimists have been eyeing the highway reauthorization bill as a potential vehicle to move a limited set of tax reform measures, but according to McConnell, the bill might instead be better suited to pick up a different legislative passenger—the reauthorization of the Export-Import Bank. McConnell believes the highway bill would provide the best opportunity to reauthorize the bank, which is set to expire June 30.
The inability of the Senate Finance Committee Tax Reform Working Groups to meet their original May 31 deadline to report recommendations to Chairman Orrin Hatch (R-UT) and ranking member Ron Wyden (D-OR) only adds to the general pessimism. The international tax working group may offer the only glimmer of hope, with reports that it has made the most progress in hammering out detailed recommendations. The working groups are now aiming to deliver their reports before Congress departs for the July 4th recess.
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UPDATE: MAY 25, 2015
Em’s comment to JakDak:
I’m not sure of the where for the SFC recommendations but the when has been delayed:
http://thehill.com/policy/finance/242916-senate-tax-reform-groups-get-more-time
The Senate Finance Committee’s leaders are giving tax reform working groups some more time to formulate their recommendations.
Finance Chairman Orrin Hatch (R-Utah) and the panel’s top Democrat, Sen. Ron Wyden (Ore.), had hoped for recommendations by the end of May.
But in a statement Thursday, the two senators said that the working groups made it clear that they needed extra time to do the job right. The panel will set a new deadline after lawmakers return from next week’s recess.
“It is our hope these bipartisan working groups will use this extended time to finalize their recommendations for tax reform and produce in-depth analyses of options and potential legislative solutions,” Wyden and Hatch said in a statement.
etc.
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Shadow Raider says
April 29, 2015 at 6:39 pm
The Senate Finance Committee just released the comments sent by the public on tax reform. As expected, there are lots of comments about CBT and FATCA.
http://www.finance.senate.gov/newsroom/chairman/release/?id=3b14e94b-69f9-41e2-9fd3-7d191971b7ee
Hatch, Wyden Release Public Input on Bipartisan Tax Reform
Over 1,400 Submissions Made to Working Groups
WASHINGTON – Finance Committee Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) today released over 1,400 submissions from stakeholders on how to best to overhaul the nation’s broken tax code. In March, the Committee sought input from the public in an effort to provide additional data and information to the Committee’s bipartisan tax working groups, which are currently analyzing existing tax law and examining policy trade-offs and available reform options within each group’s designated area.
“We thank the stakeholders and public who provided us with this valuable data and input,” Hatch and Wyden said. “These submissions have equipped us with the ability to better evaluate how reforming the tax code will affect both American families and business of all kinds. As our bipartisan groups work towards producing substantive recommendations on how to reform the tax code, they will now be able to consider these valuable ideas.”
All comments received by the Committee that met submission requirements were made public.
Submissions can be found below. Total submissions to each bipartisan tax working groups are as follows:
Individual Income Tax – 448
Business Income Tax – 332
Savings & Investment -128
International Tax – 347
Community Development & Infrastructure – 207
Each of the five bipartisan working groups is currently working to produce findings on current tax policy and legislative recommendations within its area, with the goal of having recommendations from each of the five working groups completed by the end of May.
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Thanks, Shadow Raider, for alerting all here. There will be many Brockers reading, starting with the submissions (not all by individuals) to International Tax.
June 26
After having been provided additional time to finalize their proposals for consideration by the full Committee, the Senate Finance Committee Tax Reform Working Groups are due to submit their proposals by this Friday, June 26
Thanks for the head’s up again, JakDac. Looking forward to Friday.
Just called 202 224 4515 person not at desk thus emailing You can too
julia_lawless@finance.senate.gov
Re: International Tax Working Group to report back to the committee by June 26 Please advise where we can access the report Cheers JD
International Tax Working Group
http://blogs.rollcall.com/topic-a-tax-finance/tax-reform-moves-to-back-burner-but-debate-remains-active/
The Senate Finance Committee chairman, Senator Orrin Hatch (R-UT), has established working groups to study different aspects of the tax system. These working groups are scheduled to report back to the committee by June 26.
Other press contacts
aaron_fobes@finance.senate.gov
amelia_breinig@finance.senate.gov
Interesting called again talked to a staffer that read some submissions seemed sympathetic and said they did not realise this was happening. Shows we HAVE to get the word out.
Fingers crossed
@Jacdak
Did not realise this was happening? WHAT? After all the submissions sent in?
JakDac,
Thanks for being on this. Others need to be as well — given the information you’ve given us.
Maybe tweet press people at Senate committee ?
https://twitter.com/ameliabreinig
https://twitter.com/aaron_fobes
https://twitter.com/lawlessonthehil
Staffer said Amelia stated postponed till July 2
Maybe we may celebrate this July 4th
Lawless, Julia (Finance)
2:49 AM (6 hours ago)
to me
Hi Jak,
It won’t be today. The Finance Committee’s bipartisan tax working groups are continuing to make progress and plan to continue their work through the recess to finish reports to the Chairman and Ranking Member.
Thanks,
Julia
From: Jak Dac
Sent: Friday, June 26, 2015 10:08 AM
To: Lawless, Julia (Finance)
Subject: Re: International Tax Working Group to report back to the committee by June 26 Please advise where we can access the report Cheers JD
Jak Dac
8:55 AM
to Julia
Is there any relief for government mandated pensions that are earned and taxed in the expats country ?
Cheers JD
Thanks @Jak Dac for the followup and keeping us apprised! Much appreciated.
No Bills from Senate Tax Reform Groups
In January, Senate Finance Committee Chair Orrin Hatch (R-UT) appointed bipartisan working groups of senators to study personal, corporate and international tax law options.
The five groups and their co-chairs are as follows:
Individual Income Taxes – Sens. Chuck Grassley (R-IA), Mike Enzi (R-WY), Debbie Stabenow (D-MI).
Business Income Tax – Sens. John Thune (R-SD), Ben Cardin (D-MD).
Savings and Investment – Sens. Mike Crapo (R-ID), Sherrod Brown (D-OH).
International Taxation – Sens. Rob Portman (R-OH), Chuck Schumer (D-NY).
Community Development – Sens. Dean Heller (R-NV), Michael Bennet (D-CO).
All of the working groups expect to conclude their work by the end of June. Most of the five groups will publish reports of their discussions. None are expected to offer legislation.
Sen. Rob Portman indicated that the International Tax Reform group was waiting for scoring on their various provisions from the Joint Committee on Taxation. Sen. Sherrod Brown suggested that there may be some “efforts to boost access to savings among middle-income Americans” in their report.
Sen. Ron Wyden noted that the International Tax Reform discussions have lead him to a new openness to consider patent and innovation boxes. Sen. John Thune mentioned the concept of tax reform with revenue from reform being used to fund the current highway bill. Thune stated, “I do not think we are going to get to any kind of full-blown tax reform in time to do the pay-fors for the highway bill.”
Finally, Sen. Ben Cardin indicated that the business tax group discovered that, “It is expensive to lower rates because you have to deal with the business aspects of personal income tax as well as the corporate tax.” Cardin concluded, “Getting a major bill or any bill done in this political climate will be a challenge.”
Editor’s Note: Both the House and Senate taxwriting committees now have placed tax reform legislation on hold. The focus is shifting to tax extenders such as the IRA charitable rollover. Will the tax extenders be for one year or two years? Will some of the extenders be made permanent? When will the bill pass? Stay tuned for further developments.
http://dclegacy.org/?pageID=38
With Grassley in charge of Individual Taxation, and Schumer in charge of International Taxation, I’m not exactly bursting with hope for relief. But, we’ll see.
Foo
They just need to tell us ; Let them eat cake
They’re down to the wire on the Hill…at least in Senate-time. The Senate Finance Committee’s tax reform working groups now have until early July to finish their work. They were first supposed to wrap up at the end of May, then the end of June. Meanwhile, Finance panel Chair Orrin Hatch won’t raise taxes to pay for highway funding, but The Hill reports that Senate Democratic leaders want a six-year, $478 billion transportation bill largely funded by taxing corporate profits held offshore. They insist a short-term highway funding extension would be “very hard” to accept. It may get easier. Funding authority for the Highway Trust Fund ends in a month. – See more at: http://taxvox.taxpolicycenter.org/2015/06/29/one-more-step-for-equality-and-two-views-on-state-eitcs/#sthash.5d8bKdkc.dpuf
http://taxvox.taxpolicycenter.org/2015/06/29/one-more-step-for-equality-and-two-views-on-state-eitcs/
*jakdax excuse my cynacism but I think expats will literally be run over especially with a highway bill on the table
Oh what happened to the passport bill
Anyyone know
Received an email from Niels (AMCHAM Australia) including
Another AmCham preoccupation since last month has been taxation issues. I want to thank Chris Morris of PwC for chairing our newly-constituted Taxation Committee; let me know if you are interested in participating or hearing more about it. Part of our delegation will meet in Washington next week with the US Treasury to push again for the early resumption of bilateral tax negotiations between the US and Australia. Check our recent letter outlining our position on a number of shortcomings that can only be addressed if bilateral talks resume, including ceasing the unfair taxation by the IRS of Australian superannuation
No breakthrough, Jak, but I do see a path forward based on talks there last week. Let me first consult with the Tax Committee first, but you will hear about it!
Cheers, Niels
Survey says: 35 percent of Americans would expatriate
Wednesday, 1 Jul 2015 | 8:00 AM ET
CNBC.com
The word is getting out
Comments go on forever ( 5482 Comments) many interesting
FromPatriotToExPatriate
There are four kinds of Amrericans divided into two groups:
Group A – Americans living outside the United States who pay taxes to their country of residence
1. Those who are forced to renounce U.S. citizenship. This group consists of Americans abroad, who ATTEMPT to be U.S. tax compliant, but find (as Nina Olsen of IRS Taxpayer Advocate) would confirm, that it is almost impossible. They live under constant threats of fines and penalties and general fear of the U.S. Government. They are no being hunted by FATCA. If you were “hunted” you would renounce too. They do the only thing they can do – renounce U.S. citizenship. Interestingly, they really wish they could comply with all the U.S. laws and regulations. They just can’t.
What is particularly interesting about this group is that:
It is their desire to comply with U.S. laws that leads to the renunciations
http://www.cnbc.com/id/102799503
I believe many people are ignorant of the “Oh My God” moment (as in comments)
2. Americans abroad who make no attempt at U.S. tax compliance. They live in a blissful state of ignorance (FATCA will soon change that) and they don’t really think about U.S. citizenship. Hence, renunciation is not on their radar. But, wait to they get that FATCA letter. They will renounce.
A spokeswoman for Finance Committee Chairman Orrin Hatch was quoted as saying that the groups, whose reports were due before Congress adjourned for the Fourth of July holiday, will now have until early July to develop their proposals.
http://www.ey.com/GL/en/Services/Tax/International-Tax/Alert–Report-on-recent-US-international-tax-developments—2-July-2015
ALSO NOTE
It remains unclear whether the working group recommendations will be made public.
@ JakDac
Might not be made public? Good grief! Thanks for keeping us posted about this.
Well first off- using international taxes to fund the highway program doesn’t sound good for RBT.
And second- a “hybrid” territorial tax system sounds to me like corporations will get a good deal and individuals will not. I am assuming here but it just sounds ominous. In my heart- I honestly just cannot imagine that America- in such debt- will EVER give up this source of income from CBT. It is a legal way to have their hands in other people`s pockets and much too lucrative. And what expats don`t pay will have to be taken from homelanders coffers, and they dont want that.
Last but not least- it irks me to no end that the topic of Delaware and Wyoming ( and I have hear South Dakota is now also following suit) it always left unadressed.