Tags: schumer | inversions | scale | back | time | frame

Schumer Looks at Altering Time Frame in Tax Inversions Proposal

Tuesday, 09 Sep 2014 03:58 PM

Senator Charles Schumer may scale back his plans to limit the future deductions of U.S. companies that took foreign addresses to reduce their tax bills.

A draft bill by Schumer would limit interest deductions for companies that inverted after April 17, 1994, a date that could mean higher taxes for companies including Tyco International Ltd. and Weatherford International Plc.

“We may change the time frame,” the New York Democrat told reporters in the Capitol today.

Schumer, who plans to introduce the bill this week, didn’t say whether or when Senate Democrats would seek a vote on his bill or other measures designed to curb inversions. Lawmakers are scheduled to leave Washington by the end of September if not sooner and return after the Nov. 4 election.

He also said he didn’t yet have an official estimate of how much revenue the bill would raise for the U.S. government.

The draft bill, obtained by Bloomberg News on Sept. 7, is designed to curb earnings stripping, a practice that companies use to reduce U.S. taxes on their income.

Business groups have been criticizing the Schumer proposal.

“The proposal would actually discourage important foreign direct investment in the United States and set a dangerous precedent for changing tax rules mid-stream, injecting even more uncertainty in our nation’s shaky tax system,” Dorothy Coleman, vice president for tax and domestic economic policy at the National Association of Manufacturers, wrote in a blog post.

Separately, Senate Finance Committee Chairman Ron Wyden, an Oregon Democrat, said he continues to work with Orrin Hatch of Utah, the panel’s top Republican, on a bipartisan stopgap proposal on inversions.

Wyden said he was “encouraged” by that effort.

Treasury Secretary Jacob J. Lew said yesterday the administration will decide in the “very near future” what it can do to limit inversions without congressional approval.

Hatch told reporters that Treasury’s actions were “all political” and that his staff and Wyden’s staff are working “assiduously.”

 

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Senator Charles Schumer may scale back his plans to limit the future deductions of U.S. companies that took foreign addresses to reduce their tax bills.A draft bill by Schumer would limit interest deductions for companies that inverted after April 17, 1994, a date that...
schumer, inversions, scale, back, time, frame
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2014-58-09
Tuesday, 09 Sep 2014 03:58 PM
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