Staff Writer and Editor AccountingWEB
Share this content
AccountingWEB

Bramwell’s Lunch Beat: Sen. Bernie Sanders Backs Top Marginal Tax Rate Increase

by
Jun 12th 2015
Staff Writer and Editor AccountingWEB
Share this content

FedEx to book $2.2 billion pension accounting change
FedEx Co. said on Friday it will book a $2.2 billion pretax charge in its most recently ended quarter as a result of its decision to switch to a pension accounting method that it said makes it easier to gauge plan performance, wrote Chelsey Dulaney of the Wall Street Journal. FedEx joins dozens of companies, such as AT&T Inc., that have adopted mark-to-market pension accounting in the last few years. The method allows pension gains and losses to flow into earnings sooner than under old rules, which allow companies to smooth out the impact over several years. FedEx said it would now recognize actuarial gains and losses in the fourth quarter of its fiscal year rather than amortizing them over several years, making its operating performance easier to understand and more transparent.

Read more

Bernie Sanders eyes top tax rate of more than 50 percent
Democratic presidential candidate Bernie Sanders said on Thursday he supports raising the top marginal tax rate to “over 50 percent” – and increasing the corporate tax rate, wrote Sahil Kapur of Bloomberg. In an interview on PBS's Charlie Rose program, the Vermont senator said he is “working right now on a comprehensive tax package, which I suspect will, for the top marginal rates, go over 50 percent,” though he wouldn't endorse a specific rate yet. He often points out that the top marginal rate exceeded 90 percent under Republican President Dwight D. Eisenhower. And while the White House and many Republicans want to lower the corporate tax rate, Sanders said he wants to raise it, as well as eliminate loopholes that allow corporate and wealthy taxpayers to reduce their tax bill. “If you look at the collective percentage of revenue coming in from corporations today, it is significantly lower than it was back in the 1950s,” he said.

Read more

Republican governors start learning to like tax hikes
Republican leaders who control US states are confronting the consequences of no-new-tax pledges as they face shortfalls and try to preserve education and infrastructure, wrote Mark Niquette and Margaret Newkirk of Bloomberg. Nevada, Kansas, and Alabama have enacted or are debating increases in taxes on sales, tobacco, corporate income, and other items, and six others have passed higher fuel levies despite a small-government dogma. In Louisiana, Republican lawmakers and Gov. Bobby Jindal have been engaged in a near-theological debate about what constitutes a tax increase as they seek to close a $1.6 billion budget gap. Some Republicans are even willing to violate a pledge backed by anti-tax crusader Grover Norquist to oppose all increases. Norquist, founder of Americans for Tax Reform, called states increasing taxes “outliers” whose leaders aren’t stalwart enough to avoid overspending and to spurn forbidden fiscal fruit.

Read more

Dems propose carbon tax
Two Senate Democrats sponsored a bill on Wednesday to institute an economy-wide tax on carbon dioxide emissions, revenue that would be returned through rebates and tax cuts, wrote Timothy Cama of The Hill. Sen. Sheldon Whitehouse (D-RI) and Sen. Brian Schatz (D-HI) said their bill aligns with conservative economic principles and Republicans should support it. The tax would be charged at $45 per ton of carbon dioxide or equivalent greenhouse gases for coal, oil, natural gas, and other hydrocarbons, collected at the place where it is produced or refined. Whitehouse said that effects of climate change from carbon emissions amounts to a subsidy for fossil fuels, and a carbon tax would significantly cut that subsidy. “A carbon fee can repair that failure by incorporating unpriced damage into the cost of fossil fuels. Then, the free market – not industry, not government – can drive the best energy mix for the country, with everyone competing on level ground,” he said.

Read more

[ALSO: A Bloomberg Viewarticle explains why lawmakers should give the carbon tax bill “the attention and improvement it deserves.”]

IRS ponders tax issues of new revenue recognition rules
The IRS is starting to take stock of how the new revenue recognition accounting standards will affect tax reporting, and it’s expecting to find increased differences between financial accounting and tax accounting rules, wrote Tammy Whitehouse of Compliance Week. In a notice asking for input and comments, the IRS notes “the new standards raise a number of substantive and procedural issues for the IRS, including whether the new standards are permissible methods of accounting for federal income tax purposes.” Tax rules require companies to secure permission from the IRS if they are making accounting method changes for federal income tax purposes. The IRS is now growing concerned over the types of accounting method change requests it might face as companies adopt the new revenue accounting standards. The IRS is asking for written comments by Sept. 16.

Read more

Recent AccountingWEB Articles That You Can’t Afford to Miss:

How to Build an Unclaimed Property Audit Defense
Cash-strapped states are turning to unclaimed property audits as a source of capital. Here is how organizations can manage their unclaimed property risk.

Read more

Clarified Auditing Standards: Audit Procedures in Response to Assessed Risks
AU-C Section 330 requires auditors to design and implement responses for the assessed risks of material misstatement.

Read more

Selling Digital Goods to EU Consumers? The VAT Man Wants a Word with You
US providers of digital goods and services will need to comply with changes to European Union value-added tax rules.

Read more

Editor’s Corner: Do You Want an Excellent Practice?
This week's column poses some questions and challenges to practitioners about what they are doing, or planning to do, in order to become "excellent."

Read more

Tags:

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.