Bramwell's Lunch Beat: Revenue Standard, Trump Tax Plan, Jeb’s Tax Stanceby
Beyond the new revenue standard â upcoming tasks for accounting profession
On Sept. 17, panelists from various industries and standard-setters discussed the implementation challenges, as well as what companies should look out for, at a Bloomberg BNA conference on revenue recognition in New York, wrote Xing Gao of Bloomberg BNA. One reason why the new standard has been difficult for companies to implement is it is principles-based, requiring accounting professionals to make estimates and judgments. âAccountants are used to follow the âblack and white,' âyes and no' rules,â said Stephen Rivera, senior director of Johnson & Johnson. Panelists agreed that âdeferred revenueâ is one of the items that would be affected the most by the new standard. âToday, I have to answer the question of what are the assumptions I'm using, and how did I come up with the assumptions,â Rivera said.
Trump plan cuts taxes for millions
Republican presidential candidate Donald Trump plans to unveil an ambitious tax plan on Monday that he says would eliminate income taxes for millions of households, lower the tax rate on all businesses to 15 percent, and change tax treatment of companies' overseas earnings, wrote Monica Langley and John D. McKinnon of the Wall Street Journal. Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25 percent, compared with the current 39.6 percent rate. The Trump plan would eliminate or reduce deductions and loopholes to high-income taxpayers, and would curb some deductions and other breaks for middle-class taxpayers by capping the level of individual deductions.
Jeb Bush defends tax breaks for wealthy
The wealthiest Americans would receive sharply higher tax breaks under Jeb Bush's tax proposal, the former Florida governor says, because they pay a disproportionate share of taxes in the first place, wrote Kyle Cheney of Politico. âThe simple fact is 1 percent of people pay 40 percent of all the taxes,â Bush said on Fox News Sunday. âOf course, tax cuts for everybody is going to generate more for people that are paying a lot more. I mean that's just the way it is.â Economists assessing Bush's proposal have found that while middle-class Americans would get a 2.9 percent boost in income, the top 1 percent would get an 11.6 percent boost â and Bush himself would save $3 million. âLook, the benefit of this goes disproportionately to the middle-class,â Bush responded. âBecause higher-income people pay more taxes right now, proportionally, everybody will get a benefit. But proportionally, they'll pay more in with my plan than what they pay today.â
Marco Rubio proposes tax credit to spur paid family leave
In a speech in Washington on Sept. 25 before the Values Voter Summit, a gathering of social conservatives, Sen. Marco Rubio (R-FL) outlined his plan to provide a 25 percent tax credit to any business that offers four to 12 weeks of paid leave, wrote Jeremy W. Peters of the New York Times. Rubio, a Republican presidential candidate, gave an example of a business that gives an employee $400 per week for four weeks of leave, saying the business would earn a $400 tax credit. âOne of the greatest threats to family today is that too many Americans have to choose between being there for their children in times of great need, or meeting the basic financial needs of their families,â he said.
- How GOP eyes permanent tax cuts (The Hill)
- Rand Paul: My tax plan cuts taxes for all but Trump's doesn't (Newsmax)
- Jeb or Hillary, tax reform wins in 2016 (CNBC)
- Trump should call for more taxes on the rich (Bloomberg View)
- Raising taxes on the rich can't fix inequality (Bloomberg View)
- Is wealth inequality hidden in tax havens? Piketty's co-author thinks so (Wall Street Journal)
- American tax exceptionalism (Wall Street Journal)
- Crunchtime for global tax-avoidance push (Wall Street Journal)
- Deutsche Bank must face $190 million US tax fraud case (Reuters)
- Neymar assets frozen by Brazilian court over alleged tax evasion (CNN)