Health Care Bill Closes Corporate Tax Loopholes (from July)

[ProSense]

Washington D.C.: Health Care Bill Closes Corporate Tax Loopholes

Statement of Nicole Tichon, Federal Tax and Budget Reform Analyst for the US Public Interest Research Group on important new tax codification – the Economic Substance Doctrine – in the new America's Affordable Health Choices Act of 2009

“Many corporations in our country use offshore shell companies, sham headquarters, and fictitious transactions to avoid paying billions of dollars in federal taxes. The result is that taxpayers must ultimately pick up the tab.

“Current practices put ordinary tax payers and businesses without sham transactions at a disadvantage. Tax authorities must also currently play cat-and-mouse games to update regulations while companies invent new tax-avoidance schemes.

“By including language to finally make it law that a transaction needs to have a clear and meaningful business purpose, aside from beneficial tax treatment, Congress has taken a critical step in restoring some fairness to the tax system.

“The American taxpayers deserve a marketplace where productivity and innovation are rewarded instead of highly paid tax lawyers who have take advantage of the system. Making the Economic Substance Doctrine a part of the IRS Code gives regulators a chance to get out ahead of the next set of tax tricks and gimmicks that are sure to come down the pike.”

Now there is a provision that should make it into the final bill.

[ProSense]

1. No comment? n/t

[vaberella]

2. I think no one commented b/c we knew O was closing off shore companies.

But to me this is great news because it targets all the companies, insurance ones too (I'm sure they have their own offshore sister comapnies). Which is fabulous. Hit them where it hurts, the profits. But remember Prosense, the people on this board like to say that Obama is giving a gift to the insurance companies and he's a corporatist. So if you post this, where it clearly states that corporatins will get targeted---they won't like it because it disproves their agenda. Although the concentrated effort by the insurance companies to derail health care reform such as this bill should have been enough to set the record straight. But some people are slow to pick things up.

All in all, there is nothing good in this bill and never will be for many of the idiots on this board. This is one of them.