Tax filing issues don't just affect consumers
Alphabet, Inc. -- Google's parent company -- faces issues with its international tax practices. Meanwhile, tax filers may face a new kind of phishing scam during filing, and what's next for carbon taxes.
Alphabet, Inc. -- Google's parent company -- faces issues with its international tax practices. Meanwhile, tax filers may face a new kind of phishing scam during filing, and what's next for carbon taxes.
On the line for Alphabet, Inc: $3.5 billion. On the line for Alphabet, Inc: $3.5 billion.Intel and the IRS are in court over some of the firm鈥檚 international tax practices, but the biggest winner in the dispute could be Google鈥檚 parent company.聽The Wall Street Journal聽reports (paywall)聽that at least 20 firms are watching the case, which would affect cost-sharing arrangements between US corporations and their low-taxed foreign subsidiaries.
New from TPC: Economic development briefs from the State and Local Finance Initiative.聽How do state governments help small businesses borrow money or otherwise subsidize local investment? Often states use loan guarantees or even direct lending to聽reduce risks for banks and investors.聽Similarly, they聽use their tax systems to subsidize economic development. TPC鈥檚 Norton Francis examines both strategies.
Watch out for email and e-filing.聽Scammers聽posing as company CEOs聽have been emailing heads of Human Resource departments, requesting all W-2 forms of employees. Unsuspecting HR staff could inadvertently aid in the theft of employees identities. Meanwhile for e-filers, the Online Trust Alliance released an audit with disturbing findings: Six out of 13 tax software websites in the IRS Free File program聽failed cybersecurity protocols. Free File allows taxpayers who earned less than $62,000 in 2015 to e-file their taxes for free. Seventy percent of American taxpayers are eligible.
On the Hill today.聽The Senate Finance Committee holds a聽hearing聽on multi-employer pension plan systems.
Will Washington State levy the nation鈥檚 first carbon tax?聽The state legislature this week considers a聽ballot measure, Initiative 732, that would levy a tax of $25 per metric ton of fossil fuel emissions burned in Washington, reduce state鈥檚 sales tax by one percentage point, increase a low-income exemption, and reduce certain manufacturing taxes. If lawmakers can鈥檛 agree on an alternative by聽March 10,聽Initiative 732 will be on the November ballot.
In Russia, a big gas tax hike.聽The government聽needs cash聽to address its growing deficit, and President Vladimir Putin just approved plans to raise tax rates on gas and diesel by nearly 25 percent. The levy could raise 89.3 billion rubles ($1.1 billion) this year. Won鈥檛 help his struggling economy much, however.
This article first appeared at TaxVox.