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PostHeaderIcon Tax News – July 30, 2013

The big tax news yesterday was President Obama’s speech about corporate tax “reform” (are you sick of the word yet?).  His plan would drop the corporate tax rate from 35%  to 28% and it would create a special manufacturing company rate (it will be interesting to see how everyone tries to become a “manufacturer”) of 25%.  The flip side is, the president wants more stimulus money for construction jobs.  The big piece of it would be a change in how overseas companies are taxed and it sounds like there would be some kind of depreciation change as well.  As usual, these speeches are light on details (it all sounds good) and it doesn’t sound like the other side of the aisle took it very well.

More on the tax reform front, it looks like talks may be coming to an end before they even begin and it all centers around Harry Reids comments about tax reform actually being a tax increase.  I figured this would be a nail in the coffin and with things not even really getting off the ground, you wonder how much time they’re going to waste on this.  Not that it’s a waste trying to come up with a way to reform taxes, but a waste because it’s such a fruitless effort with out current Congress.

Fox Business has a decent article on five tax mistakes that investors make.  There’s nothing earth shattering here but it’s a good list to go through as a reminder.  I didn’t really like the fifth suggestion about U.S. Treasuries but the one on harvesting losses was solid.

This is more accounting than tax, but this article talks about how some companies were able to “massage” their earnings when they changed their accounting year end.  There is a discussion near the end about accounting method changes and year end changes that’s worth reading.

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