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.
A “hybrid territorial” tax system by the International Committee? Probably created by Monsanto.
@Bubble Yes your pension plan will glow in the dark.
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://bacgift.org/?pageID=38
Forty-eight percent of the 370 expats surveyed say they would vote for a presidential candidate who promises to repeal FATCA, a global tax law that has been in affect for a year. Twenty-nine percent say they would not vote for that candidate and 23 percent say they do not know. There are 7.6 million Americans living abroad.
http://www.fa-mag.com/news/many-expats-oppose-foreign-tax-law-22301.html
Opinion: U.S. Expats Could Make a Difference in 2016 Presidential Race
http://blogs.wsj.com/expat/2015/07/03/opinion-u-s-expats-could-make-a-difference-in-2016-presidential-race/
Finance Working Groups Set To Release Proposals As Tax-Writers Continue To Focus On International Tax Reform
By Brandon Roman on July 6th, 2015
Posted in Tax and Retirement
Legislative Activity
Deadline for Senate Finance Committee Working Groups’ Proposals Nears, Talk of International Tax Reform Continues
After being delayed for a second time, the Senate Finance Committee Tax Reform Working Groups are expected to submit their reports to the full Committee on Tuesday, July 7. Presently, it is unclear the extent to which (if at all) the reports will be made public, although it appears that this will be left to the discretion of the various groups’ co-chairs.
In addition to timing, it is also uncertain at this time what the final recommendations will look like. While the recommendations are unlikely to be tied to specific legislative proposals, it is likely that some of the Working Groups’ proposals – especially the International Tax Working Group – will be quite detailed. Moreover, with regard to international tax reform specifically, the Organisation for Economic Co-operation and Development’s (OECD) efforts to combat base erosion and profit shifting (BEPS) have created a particular sense of urgency among lawmakers to reform the country’s current system of international taxation. However, while the OECD BEPS efforts have had an impact on the timing of reform, it does not appear that the International Tax Working Group is particularly vested in the Obama Administration’s recommendations to the OECD.
Relatedly, it appears that the future of any reforms to the U.S. tax Code this year are likely to be linked with how Congress chooses to proceed on funding the Highway Trust Fund. In the Senate, Majority Leader Mitch McConnell (R-KY) is hoping to move a two-year highway bill, as well as a package of two-year tax extenders, before highway funding expires on July 31. On the House side, however, tax-writers are likely to pursue a highway patch through the end of the year, with a six-year highway bill, a package of permanent tax extenders, and international tax reform all to be addressed later this year. While it is presently unclear what approach will triumph, the ultimate outcome may be impacted by timing constraints.
http://www.capitalthinkingblog.com/2015/07/7927/
Thanks, JakDac.
I hope they do release the reports. Can’t think of why they wouldn’t — unless they want to keep their surprises secret until they spring them on us legislatively.
If US lawmakers view Americans abroad as a potential source of revenue to fund US highways, they’re in for a surprise! AND we don’t even use them!
@Bubblebustin
Law makers see US persons as easy marks… so what if they can vote… don’t matter… they can’t fight back.. they can complain all they want… we don’t hear them… that is how I see it
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On https://www.facebook.com/FoxNews went through 2500 comments with search term “tax” besides my posts re Expat tax could ONLY find these
Laura Wilson Because of citizenship based taxation and FATCA US citizens are increasingly unable to bank abroad, invest nor save for retirement. They are often doubly taxed and harshly penalized. If you cannot bank you cannot leave. This includes students, exporters, those wishing to join/start businesses and those looking for international experience. Will you change the US method of taxation to one based on residency rather than citizenship as the remainder of the world employs so the US can dance in the global economy and compete internationally?
http://www.wsj.com/…/expats-left-frustrated-as-banks…
Laura Wilson US citizens living abroad are being unjustly terrorized by the IRS according to taxpayer advocate Nina Olson. They can no longer compete on the international stage because of citizenship based taxation and now FATCA. Will you bring the US into the 21st century, honor the principles that were fought for in the American Revolution and convert the US to residency based taxation as enjoyed by the remainder of the world?
Expats Left Frustrated as Banks Cut Services Abroad
Americans living abroad are being cut off by banks…
WSJ.COM|BY LAURA SAUNDERS
Larry Feign The State Department estimates 8.7 million Americans live and work abroad, a population larger than 39 states. The USA is the only country in the world which taxes its citizens living overseas. The USA also requires its overseas citizens to report their bank accounts, however small, to the Financial Crimes Division of the IRS, treating them as tax-dodging criminals, something that no other Americans are required to do. On top of this, the USA passed the FATCA law, requiring banks around the world to report on American clients and savers, including schoolchildren. The net result is overseas banks refusing to do business with American individuals and businesses, which hurts not only those US citizens, but American exports and influence overseas. The dilemma is causing the greatest surge of citizenship renunciations in history. Should the USA join the rest of the world in not taxing its citizens living abroad, thus freeing them to expand American business, influence and good will?
Checked 3600 plus posts on https://www.facebook.com/FoxNews
ONE more
Kit Hardy The U.S. Is the only country in the world that practices Citizen Based Taxation CBT, apart from Eritrea which one of the worst dictatorships and violators of human rights in the WORLD. Will the candidate repeal CBT, taxation without representation and bring justice to its 8 MILLION+ citizens who reside permantly abroad and are fully taxed in the countries the reside in?
Previously checked 3600 plus posts on https://www.facebook.com/FoxNews
there was ONE more
Today checked 1400 more by search term “tax” NO more re Expat tax
After being delayed for a second time, the Senate Finance Committee Tax Reform Working Groups are expected to submit their reports to the full Committee on Tuesday, July 7.
Can not find any news regarding this has anybody else ?
????
Tuesday July 7, 2015 12:01 AM
The White House wants Congress to pay for a long-term highway bill by overhauling parts of the business tax code. That effort could get a boost later this week when members of the Senate Finance Committee’s international tax reform working group complete work on recommendations for business tax reform
http://readingeagle.com/ap/article/congress-races-toward-highway-trust-fund-deadline&template=mobileart
Posts on https://www.facebook.com/FoxNews
TWO more keep them coming
Bob Remington The United States is the only civilized country in the world that has a tax system based on citizenship rather than residency. As a result, average law-abiding Americans who live in other countries and who do not earn enough money to owe any US tax are renouncing their citizenships in record numbers because of the compliance costs associated with FATCA and the restrictive financial regulations it imposes on their daily lives. Would you be in favor of joining rest of the world community and abandoning citizenship-based taxation to bring relief to the 8.7 million Americans who live abroad?
Walt Sanchez Americans living in countries outside the U.S. are our nation’s strongest ambassadors, yet a growing number of them feel that the US government is the biggest threat to their existence. Laws like the Foreign Account Tax Compliance Act and Patriot Act are shutting them out of banking systems both here and abroad, and on no suspicion of wrongdoing. Our unique tax system that treats our Americans abroad as though they are resident in the US makes it impossible for many of them to remain US citizens. Should the US go to a tax system based on residence like the rest of the world, or should the US continue with tax laws that generate little revenue but have the potential to end American global migration?
Thank you Walt sanchez for reposting my comment from here.
Plagiarism is the sincerest form of flattery. 🙂
Haha, Innocente. Every little bit helps 🙂
@Bubblebustin
If I failed to give you credit for writing it, I am sorry. Stealing your thunder wasn’t my intent.
I re-posted it because it was good!
I’m glad you like it Walt. I’m sure if it’s chosen or if someone contacts you over it, you’ll give credit where credit’s due 🙂
Did it get any likes?
I’ll be sure to send them to someone called Bubblebustin at Isaac Brock. I can’t wait to see how they respond to that.
Walt, just let me know if they contact you and we’ll figure something out!
The Senate International Tax Reform report is out.
It’s 82 pages all about corporate taxes until the final paragraph where they acknowledge receiving a large number of submissions from US expatriates regarding individual international tax issues. But they aren’t going to do anything about it.
Noooo…I can’t believe it!! They have left us no choice except to renounce. I’m devastated…..so sad