Ireland's Soft Pedaling Tax Avoidance Crack Down


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The Irish government's announced plans to phase out the infamous "Double Irish" loophole represents a significant victory for tax justice advocates worldwide who have sought to end this practice, but also leaves an opening for corporations to find new tax avoidance schemes.

The loophole -- used by companies like Apple and Google to dodge billions in taxes -- allows multinational corporations to route international profits to Irish subsidiaries and then tell Irish authorities that these subsidiaries actually have tax residence in a tax haven such as Bermuda or, in the case of Apple, have no tax residence at all. Irish lawmakers have proposed requiring corporations registered in Ireland to also be tax residents of the country.

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Georgians Set to Vote on Income Tax Straightjacket


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Georgians will vote Nov. 4 whether to permanently enshrine the state's top income tax rate of 6 percent in the state constitution.

The so-called "tax-cap" amendment sounds American as apple pie. No one looks forward to the day their income tax bill comes due, and the prospect of capping the rate understandably sounds appealing at first. But Georgia voters who take a second-look at the proposal will see it for what it truly is: an attempt to keep taxes for the wealthiest Georgians low and to block future generations from meeting the needs of a rapidly growing state.

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Steris, the latest to renounce U.S. Citizenship, Only Paid a 16.3% Tax Rate Over Three Years


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After announcing Ohio-based Steris Co.'s plans to become British for tax purposes on Monday, CEO Walter Rosenbrough later said on a conference call, "We're not typically users of aggressive tax policies and I don't think we are here."

That's his story, and he's sticking to it. But even a cursory look at the company's financial reports tells another story.

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The Inversion Parade Continues: Steris Announces Pretend Move to Britain


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As we mentioned a couple weeks ago, the Treasury Department cannot fix the inversion crisis by itself. Only weeks after the Obama Administration announced that Treasury will take important regulatory steps to help prevent U.S. -based companies from inverting to foreign havens as a tax-dodging strategy, the Ohio-based Steris Corporation announced its plan to purchase a British health care firm and reincorporate in the United Kingdom.

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State Rundown 10/10: Lottery Bust, Music Credits on the Table


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Oklahoma state lottery faces scrutiny; Kansas revenue projections fall short for the fourth time; New York music industry fights for tax incentives; California lawmakers want extension of tax increases.

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European Commission Crackdown on Special Tax Deals


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The European Commission's recent action to crack down on special deals some European Union governments offer to corporations could be a blow to multinational corporations' tax-dodging strategies.

As we noted in a report earlier this year, three European countries (Ireland, Luxembourg and the Netherlands) are among the top twelve tax haven countries for U.S.-based multinationals. Corporations use these and other tax havens to artificially shift their profits to foreign jurisdictions and avoid U.S. tax.

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Tax Proposals on the Ballot this Election Season


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This year, voters in states across the nation will have the opportunity to make their voices heard on a number of ballot initiatives regarding taxes. In some states, ballot initiative supporters are seeking to limit tax policy choices available to lawmakers, while ballot initiatives in other states would raise revenue to boost school funding. We've compiled a few of them here, along with links to the best resources, to help voters understand the issues and make their decision this November.

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Ohio Gov. John Kasich's Income Tax Plan Fails Reality Test


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The Cleveland Plain Dealer has a new series on Ohio Gov. John Kasich's ambitions to eliminate the state's income tax, and the findings aren't great for tax cut supporters.

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Former CBO Director Holtz-Eakin on Dynamic Scoring: Revenue Estimating Is Already a Big Guessing Game So Why Stop Now?


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An article in today's Politico describes plans by congressional Republicans to change the budgeting rules to incorporate "dynamic scoring" of tax proposals should they gain control of the Senate. Dynamic scoring is fancy way of claiming tax cuts partly or completely pay for themselves.

This might sound strange to anyone not familiar with the fuzzy math employed by proponents of tax cuts. They rest on the extreme version of "supply-side" economics, promoted most prominently by Arthur Laffer, which claims tax cuts encourage work and investment so profoundly that the subsequent increase in incomes and profits will result in a revenue increase that partly or completely offsets the revenue loss from the reduction in tax rates.

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State Rundown 9/30: The Gas Tax Cometh?


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Political leaders in New Jersey and South Carolina consider gas tax increases; A new Wyoming study finds that gas tax increases aren't fully passed onto consumers; Transportation funding plays a bigger role in Michigan's gubernatorial race.

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