Eversheds Sutherland Tax Reform Law Blog
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Representative Levin Targets Earnings Stripping

Inversion transactions are making waves, and politicians are taking notice, with the number of legislative proposals dealing with inversions and other international tax issues growing at a fast rate. Of particular note, Representative Sander Levin (D-Mich.), the ranking member of the House Ways and Means Committee, released a discussion draft of the Stop Corporate Earnings Stripping...

The Topsy Turvy Status of Inversions – Levins Move Forward, Wyden and Pfizer Move Back

Senator Carl Levin (D-Mich.) and 13 other Senate Democrats introduced legislation on May 20th that would significantly reduce the ability of U.S. companies to expatriate.  The Stop Corporate Inversions Act of 2014 would generally enact President Obama’s budget proposal targeting corporate inversions (see our prior post) by reducing from 80% to 50% the post-inversion ownership...

House Republicans Work on Tax Reform Bill; Democrats Not Invited

Yesterday, Republicans on the House Ways and Means Committee held the first of several meetings scheduled for this month to produce a tax reform bill.  These meetings are closed-door affairs for Republican Committee members only. At these meetings, Committee Republicans hope to rewrite the discussion drafts released by Chairman Dave Camp (R-Mich.) earlier this year and emerge with a...

Will Fight Over Revenue Kill Reform?

Previously we noted that the lack of agreement between Republicans and Democrats on the issue of revenue neutrality could pose major problems for achieving comprehensive tax reform.  On July 10, Senate Finance Committee Ranking Member Orrin Hatch (R-Utah) claimed that he and Committee Chair Max Baucus (D-Mont.) had agreed that the Committee’s reform bill would be revenue neutral. ...

Baucus, Hatch Call for “Blank Slate” Reform Met with Mixed Reactions

The call for a “blank slate” approach to tax reform by Senators Max Baucus (D-Mont.) and Orrin Hatch (R-Utah) was met with mixed reactions on and off Capitol Hill.  House Ways and Means Chairman Dave Camp (R-Mich.) praised the move, calling the announcement “welcome news for Americans who deserve a simpler, flatter, fairer tax code that leads to more jobs and higher wages.”  Some...

No Consensus on Whether There is Consensus on Comprehensive Tax Reform

When it comes to the likelihood of tax reform, opinions vary, even among those deeply involved in the process.  Tony Coughlan, a Senate Finance Committee Minority Tax Counsel, said that tax reform is an “iffy proposition” given the distractions caused by the recent scandals and a lack of leadership from the White House.  Congressman Sandy Levin (D-Mich.), the top Democrat on the House...

Camp Shows Support for a Flat Tax Rate on Foreign Intangibles Income

At a hearing last week on tax havens, base erosion and profit shifting, House Ways and Means Committee Chairman Dave Camp stated that “revenue erosion” would be limited by imposing a 15% flat tax on all foreign income from intellectual property rights and intangibles. Rep. Camp’s proposal would provide a deduction for income related to intangibles kept in the U.S. but also...

House Ways & Means Determined to Pass Tax Reform This Year – Even Without Democrat Votes

Republicans on the House Ways & Means Committee plan to move a tax reform bill out of the Committee before the end of the year, even if none of the Democrats on the Committee vote for it. An article in The Hill quoted several members who appeared skeptical of a bipartisan measure coming out of the Committee. Rep. Kevin Brady (R-TX) said he’d “be satisfied if the House passed its...