FINANCIAL TIMES: …“Any significant tax code changes should only be made within the context of comprehensive tax reform,” said Matt Miller, vice-president for tax and fiscal policy at the Business Roundtable, the executive lobby group. “It’s necessary to preserve any corporate tax base-broadening for the bigger deal on tax reform.
Among the tax preferences at risk include $28bn in deductions benefiting fossil fuel companies, including oil, gas and coal companies. Another is a special accounting method known as “last in, first out”, used for inventory valuation by manufacturers and distribution companies, which if repealed would save $77bn for the US government.
The application of low capital gains tax rates to private equity, hedge fund, venture capital and real estate profits – known as carried interest – could also be curtailed, for a $13bn gain to federal coffers. Favourable depreciation rules for corporate jet owners and tax benefits on corporate life insurance policies, worth nearly $18bn, could also be limited or eliminated… (more)
