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.
The AARO, DA and the rest of the expat groups, aside from American Expatriates, are getting called out and hammered on FB.
“With malice toward none; with charity for all; with firmness in the right,
as God gives us to see right, let us strive to finish the work we are in;
To bind up the nation’s wounds;
To care for him who has borne the battle,
and for his widow, and his orphan.”
President Abraham Lincoln, Second Inaugural Address, March 4, 1865
@charl, “The AARO, DA and the rest of the expat groups, aside from American Expatriates, are getting called out and hammered on FB.”
Can you provide some examples for non FB types….
@George
Sure, they are long and there are many but here is a sampling: (Hope I didn’t make this too long..if yes sorry in advance). I particularly like the last comment I included.
Steven Jacobi
Walt Sanchez
Bob Jones
Walt Sanchez
Beau Davis
Beau Davis
Walt Sanchez
Alan Seigrist
Bob Jones
Beau Davis
Making CBT Reform Easy featuring work of Shadow Raider in Tax Connections.
http://www.taxconnections.com/taxblog/making-citizenship-based-taxation-reform-eas
The Chief Operations Officer at Tax Connections told me this will be part of their “big blast” tomorrow of their top ten posts of the week. I asked her if they will do a big blast to Congress.
@ Blaze and @ Shadow Raider
That’s tellin’ ’em !!!
@EmBee: ShadowRaider captured it. “Absurd…so many problems for a lot of people for no good reason…No justification…”
Strong but Easy solutions.
Anyone hearing anything about opinions / timing of recommendations put to Senate ?
@ JakDac
http://www.finance.senate.gov/newsroom/chairman/release/?id=3b14e94b-69f9-41e2-9fd3-7d191971b7ee
EmBee
Thanks
Just wondering if anyone has any inside info talking to assistants etc.
Bravo and heartfelt thanks Shadow Raider and Lynne! Now if only common sense and justice will prevail. They cannot say that they haven’t been told. You schooled them – and even provided the answers for them to copy down and implement. Now they’ve got to find the will and a sense of ethics and fair play.
@ Charl
Darn near missed your comment of comments re: AARO, FAWCO and ACA — awesome! Oooh that last — that’s tellin’ ’em too!
I don’t understand why the AARO submission is missing. Either why it was not posted or why they did not submit one.
Submissions a Catch 22 really
Non compliant taxpayers (??) are going to keep their heads down
and SOME compliant ones will battle
Some people testing the waters of foreign culture probably will not raise their hands
In some ways if America ? IRS made an effort to let everyone know (document with signature on plane, highlighted in US/ Foreign news,BIG newspaper ads etc.) there would probably be MILLIONS of people complaining and change would probably happen.
Think about it
@Mark
AARO’s submission is half way down in the Individual section.
http://www.finance.senate.gov/legislation/details/?id=CFD27F04-5056-A032-52B0-B94A2BBAD764
They are going for SCE with a footnote on RBT….grrrrrr
Let’s try to do something constructive instead of bashing other organisations.
Is there not strength in numbers ? Why not reach out to these other groups and try to working together ?
Part of AARO’s submission
Members of this Committee are fully aware of most of the problems facing U.S. taxpayers filers abroad, and I will not repeat them here.
Political writing ?
@Lizzie, “Let’s try to do something constructive instead of bashing other organisations.
Is there not strength in numbers ? Why not reach out to these other groups and try to working together ?”
With respect to Democrats Abroad in particular they have aligned themselves with the US Politicians who have called us Fatcats, Tax cheats and repeatedly state we do not pay our fair share.
Frankly many of us have cracked under this abuse.
Why won’t Democrats Abroad call a spade a spade and tell Obama and his allies that he has harmed, no not just harmed, viciously harmed, millions of human beings that do not live in the USA.
US Democrat Politicians have financially harmed, emotionally harmed and created irreparable scarring on millions of persons.
Until Democrats Abroad and some others admit the damage that their political masters have caused there is no working together.
These so called overseas organizations are not representing persons overseas, they are farming votes and donations nothing else, they are get out the vote machines, nothing more.
DA’s behavior is appropriate for what they really are, George – a propaganda arm of the Democratic Party.
FYI (edited)
135 Hart Senate Office Building
Washington, DC 20510-1501
(202) 224-3744
http://www.grassley.senate.gov
721 Federal Building
210 Walnut Street
Des Moines, IA 50309-2106
(515) 288-1145
111 7th Avenue, SE, Box 13
Suite 6800
Cedar Rapids, IA 52401-2101
(319) 363-6832
CHARLES E. GRASSLEY
WASHINGTON, DC 20510-1501
120 Federal Building
320 6th Street
Sioux City, IA 51101-1244
(712) 233-1860
210 Waterloo Building
531 Commercial Street
Waterloo, IA 50701-5497
(319) 232-6657
201 West 2nd Street
Suite 720
Davenport, IA 52801-1817
(563) 322-4331
307 Federal Building
8 South 6th Street
Council Bluffs, IA 51501-4204
(712) 322-7103
I appreciate hearing of your concerns about the tax burdens your family and other Americans living abroad face. The United States currently has a worldwide tax system that taxes the income of American residents whether it’s earned in the U.S. or abroad. If an individual has investments overseas any income on those assets are generally taxed by the country in which they are earned. In order to prevent this same income from being taxed twice, once in the foreign country and again in the U.S., a foreign tax credit is permitted. Foreigners who invest in the U.S. are subject to U.S. federal income taxes. Generally, their country of residence similarly provides a credit for taxes they paid in the U.S. or if their home country has a territorial tax system, may not tax income earned by them overseas at all.
The U.S. is one of the few developed countries that continues to tax its residence, whether individuals or corporation, on a worldwide basis. The U.S. worldwide tax system already puts American businesses at a strong disadvantage to their overseas competitors.
I have heard from many Iowans frustrated with our tax code. Our outdated tax code creates winners and losers in our economy, adds needless complexity for tax filers, and stifles economic growth with its endless uncertainty. There is little doubt that the tax code is in need of reform. The tax code, last tackled comprehensively in 1986, is suited for a 1986 economy. It needs to be reformed to suit the economic realities of today. It has become needlessly complex and overly burdensome for both individuals and businesses. We need a tax code that is simpler, fairer, and more conducive to economic growth.
The tax writing Senate Finance Committee, of which I am a senior member and which my party holds the majority in the new Congress, has engaged in numerous discussions to reform the tax code. At the end of the last Congress, former Ranking Member and now Chairman, Senator Hatch, published a staff report detailing specific issues any effort to reform the tax code should look to achieve. You may find the report, called Comprehensive Tax Reform for 2015 and Beyond, at http://www.finance.senate.gov/newsroom/ranking/release/?id=0df91455-c895-49b4-9044-d8fd9873b1dc.
Additionally, Chairman Hatch has convened five bipartisan working groups to focus on the various sectors of tax reform. I was named a co-chair of the individual income tax working group, one of five separate bipartisan Finance Committee tax working groups convened by the chairman and ranking member. The other working groups are business income tax, savings and investment; international tax; and community development and infrastructure.
As a co-chair of the individual income tax working group, I want to hear about how best to reform the tax code. I’m looking for input from Iowans on what needs to change in the federal tax code. You can find on my website a survey that asks Iowans to rank priorities and share views on individual tax breaks that are important to their households. Accomplishing tax reform will take all of us working together, from individual taxpayers to Congress to the White House. You can participate in the survey by visiting http://www.grassley.senate.gov/your-priorities-cleaning-tax-code.
Taxpayers shouldn’t have to hire a professional just to file their taxes. Congress should take on comprehensive tax reform that will increase fairness, reduce complexity and remove barriers to economic growth. I’m glad to offer my experience to this effort, and I’ll share the feedback I hear all the time from Iowans like you about their frustrations with the tax code.
Momentum is building in Washington for comprehensive tax reform. I am hopeful that these working groups in addition to the tax reform hearings the Finance Committee has held and plans to hold in the future will turn into a bipartisan solution that achieves fairness, simplicity, and economic growth.
Again, thank you for contacting me. I appreciate hearing your views and urge you to keep in touch.
Sincerely,
Chuck
COMMITTEE ASSIGNMENTS
CHAIRMAN,
JUDICIARY
AGRICULTURE
BUDGET
FINANCE CO-CHAIRMAN,
INTERNATIONAL NARCOTICS
CONTROL CAUCUS
http://www.grassley.senate.gov SEND AN EMAIL SIGN UP FOR ENEWSLETTER
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In his questionnaire
International tax reform/move toward a territorial system of taxation
Start sending
Chuck.Grassley@grassley.senate.gov
NOTE 2 email addresses
Chuck.Grassley@grassley.senate.gov website_reply@grassley.senate.gov
I appreciate your response and will advocate to US citizens abroad
Chuck think about it some ex service personnel are renouncing the country they served this is SERIOUS
At least Grassley says “I hear you,” though the rest of his letter is a rambling swill of noncommitment. I note at the bottom that he is a member of the International Narcotics Control Caucus. I’m thinking of telling him that CBT, FBARs and FATCA are causing many Americans abroad to resort to self-medication.
61% Of IRS Employees Caught Willfully Violating Tax Law Aren’t Fired, May Get Promoted
http://www.forbes.com/sites/robertwood/2015/05/07/61-of-irs-employees-caught-willfully-violating-tax-law-arent-fired-may-get-promoted/