Newsletters

Treasury Secretary Yellen Promotes Corporate Minimum Tax

A corporate minimum tax is needed to provide tax relief to the working and middle class, Department of Treasury Secretary Janet Yellen said.

“Over the past several decades, the burden of taxation – in the United States and globally – has shifted away from corporations and on the middle class,” Secretary Yellen said January 21 during the World Economic Forum’s Virtual Davos Agenda conference. “A significant reason for this shift is tax competition among nations. This competition has created a race to the bottom in corporate tax rates on footloose capital.”

She said this race-to-the-bottom has incentivized large multinational corporations to ” stash profits in their low-taxed subsidiaries around the world,” which “depletes governments of the resources they need for the complex challenges they face.”

A 2021 deal on the corporate minimum tax was struck by 137 countries representing almost 95 percent of the world’s gross domestic product. The United States had included language in the Build Back Better Act to set the corporate minimum tax rate at 15 percent, consistent with the international agreement, but the legislation stalled in the Senate after passing the House of Representatives. Its fate remains unknown. There has been no further action on the social spending bill since Sen. Joe Manchin (D-W.Va.) announced in December 2021 that he would not support the bill. He voiced his dissent on a corporate minimum tax among other concerns with the bill.

Despite this, Yellen continued to promote the concept, suggesting it is not dead yet.

A new system for a global minimum tax on corporate earnings “will improve productivity by incentivizing businesses to allocate capital to its most productive use, rather than to the use that produces the best tax result,” Yellen said.

FL - Guidance issued on catastrophic event property damage

Florida provides guidance on catastrophic event property damage for property tax purposes. Topics discussed include the payment of property taxes, […]

Read More
FL - Guidance issued on catastrophic event property damage

FL - Tax relief provided for taxpayers affected by Hurricane Idalia

In response to Hurricane Idalia, eligible taxpayers that file Florida corporate income tax returns with original due dates or extended […]

Read More
FL - Tax relief provided for taxpayers affected by Hurricane Idalia

IRS Warns About ESOP Compliance Issues, IR-2023-144

As part of ensuring high income taxpayers pay what they owe, the IRS warned businesses and tax professionals to be alert to […]

Read More
IRS Warns About ESOP Compliance Issues, IR-2023-144

Rates Used in Computing Special Use Value Issued, Rev. Rul. 2023-15

The 2023 interest rates to be used in computing the special use value of farm real property for which an election is made under Code Sec. 2032A were issued by the IRS. In the […]

Read More
Rates Used in Computing Special Use Value Issued, Rev. Rul. 2023-15

Contractors Reminded of Expanded New Energy Efficient Homes Tax Credit, IR-2023-142

The IRS has reminded eligible contractors who build or substantially reconstruct qualified new energy efficient homes that they might qualify for a tax credit […]

Read More
Contractors Reminded of Expanded New Energy Efficient Homes Tax Credit, IR-2023-142

IRS Reminds Educators About Expense Deductions in 2023, IR-2023-150

The IRS has reminded eligible educators that they will be able to deduct out of pocket classroom expenses upto $300 while filing their federal income tax returns next year. […]

Read More
IRS Reminds Educators About Expense Deductions in 2023, IR-2023-150

Taxpayers Reminded of Identity Protection PINs' Importance, IR-2023-134

The IRS has reminded taxpayers about the IRS Identity Protection PIN opt in program to help protect people against tax-related identity theft. “The Identity Protection (IP) PIN is […]

Read More
Taxpayers Reminded of Identity Protection PINs' Importance, IR-2023-134

FL - Guidance provided on 2023 tax holiday for tools used by skilled trade workers

Guidance is provided regarding the Florida sales tax holiday on tools commonly used by skilled trade workers, which is held […]

Read More
FL - Guidance provided on 2023 tax holiday for tools used by skilled trade workers

FL - Highlands County tourist development tax rate hike announced

The Florida tourist development tax rate in Highlands County is increased from 4% to 5% effective August 1, 2023. Combined […]

Read More
FL - Highlands County tourist development tax rate hike announced

IRS Reminds Employers of New Electronic Filing Requirements for Forms W-2, W-2c

The IRS has reminded employers that the new lower threshold for required electronic filing of information returns applies to tax year 2023 Forms W-2, Wage and Tax Statement, because they […]

Read More
IRS Reminds Employers of New Electronic Filing Requirements for Forms W-2, W-2c