Tax News

Treasury Weighs New Tax Scheme The Treasury Department is considering a proposal to eliminate some but not all taxes on the overseas profits of U.S. multinational companies, a central element of the administration's broader plans to overhaul the corporate-tax code.

President Barack Obama?s jobs plan is unlikely to survive intact as Congress will likely strip out and pass tax breaks while leaving other proposed spending programs on the cutting room floor, analysts say.

President Barack Obama proposed a $447 billion jobs package on Thursday to help boost the U.S. economy, challenging Congress to pass legislation made up largely of tax cuts for workers and businesses.

The Obama administration is considering a mortgage refinancing 'bailout' for the US housing sector, but a Wall Street critic says it will only make things worse for taxpayers and banks.

According to PwC US's Ready, Set, FATCA report, the Foreign Account Tax Compliance Act , a government effort to fight tax evasion that requires financial institutions to disclose U.S.-owned accounts to tax authorities or face a 30 percent withholding tax, has broad implications and presents significant challenges for many insurers.

He believes the Fed has created enough liquidity, but it's tax and regulatory barriers that have blocked growth and job creation. He also responds to GOP attacks on the Fed.

Among the sector activity stories for Tuesday, Aug. 16, from AP Business News: -- Shares of publicly traded stock exchanges tumbled after the leaders of Germany and France proposed a tax on financial transactions when they met to discuss Europe's debt crisis.

* Proposed European financial tax hurts exchange shares * Dell down in after-hours trade after earnings * Home Depot, Wal-Mart rise on earnings * Indexes off: Dow 0.7 pct, S&P 1 pct, Nasdaq 1.2 pct * For ...

* Sarkozy comments fail to ease euro zone concern * Proposed European financial tax hurts exchange shares * Indexes off: Dow 0.7 pct, S&P 1.1 pct, Nasdaq 1.5 pct * For up-to-the-minute market news see ...

Shares of NYSE Euronext fell Tuesday after German Chancellor Angela Merkel and French President Nicolas Sarkozy suggested that the eurozone adopt a tax on finanical transcations. Shares of NYSE dropped 7.5% to $26.80 in recent activity.

French and German leaders proposed a tax on financial transactions and closer joint governance of economic policy to stop the debt crisis in Europe, but did not propose increasing the euro zone bailout fund or selling euro zone bonds, French President Nicolas Sarkozy said on Tuesday.

The leaders of France and Germany, under pressure to counter a debt market crisis in Europe, have agreed to float proposals in September for a tax on financial transactions and push for closer joint governance of economic policy, French President Nicolas Sarkozy said on Tuesday.

* Obama calls for extending payroll tax cut * Says trade pacts pending in Congress must be concluded * Republican says government regulation hurting business By Jeff Mason WASHINGTON, Aug 13 (Reuters) ...

France Seeks New Deficit Battle Plan The French government pledged to consider fresh tax rises, spending cuts and other measures to ensure the country doesn't deviate from a challenging deficit-reduction trajectory.

The US Federal Reserve managed to spark a stock rally on Tuesday, but some economists are now left wondering if it will take tax cuts to inject real life into the broader US economy.

The U.S. Treasury Department reiterated Wednesday that unless the U.S. debt ceiling is raised, the U.S. runs out of borrowing authority Aug. 2, and that higher tax receipts will not give it more time.

The Federal Reserve can definitely sell its $1.6 trillion portfolio of Treasurys and use the profits to fund the U.S. government if the debt ceiling isn't raised. This could allow the government to fund its on going obligations without raising taxes or incurring new debt.

Former Treasury Secretary Henry Paulson called for the debt ceiling to be raised and for spending cuts after meeting with Treasury Secretary Timothy Geithner. "Now is the time for action on both raising the debt ceiling and tackling the U.S. debt and deficits through significant and lasting spending reduction, entitlement reform and tax reform," Paulson said in a statement.

William Dudley - at the time he was head of the NY Fed's open markets group - was granted a waiver to let him keep investments in American International Group Inc. and General Electric at the same time as the two companies were given taxpayer injections by the central bank, according to an analysis of a Government Accountability Office report conducted by a Democratic senator.

The bipartisan "Gang of Six" senators on Tuesday offered a major plan to cut the deficit by more than $4 trillion over the coming decade, but whether it can break through the budget debate will depend on whether Republican lawmakers can find a way to endorse more than $1 trillion in tax increases.