Tax News Major League Roundup - January 31

January 31, 2020

Global Tech Tax Gains Steam After Nations Set December Goal – William Horobin, Bloomberg Tax

“Progress on a global accord may cool tensions between European nations that are concerned current tax laws don’t properly account for a worldwide, data-driven economy, and the U.S., which doesn’t want its tech companies to be treated unfairly.”

Is Luxury Tax Dictating The Stance Clubs Take With Star Players? – Robert Kuenster, Forbes 

“The system calls for teams to pay a percentage of every dollar by which their payroll exceeds the threshold—the 2020 threshold is $208 million. Not many clubs pass the threshold, but as we see contracts exploding into $200-400 million range, teams are now careful not to surpass the tax threshold and are willing to trade star players they fear will be lost to free agency without compensation.”

Some are calling for a change in the rules, to allow farm league drafts to be exempt in this salary threshold.

“Not including players a team drafts in the competitive balance tax would be rewarding the club for good scouting, coaching and development.”

As a Des Moines local and a fan of our Iowa Cubs, promoting its bench strength would be a win in my book!

Expat: Individual Retirement Accounts {IRA} and Foreign Income – Manasa Sogal Nadig, The Buzz About Taxes

“In some situations, claiming a foreign tax credit on taxable wages or net self-employed income can yield a more opportune scenario to fund an IRA in the United States. This would not only provide a reduction in US taxes but will also provide the tax-payer a higher "taxable" income to work with.”

How To Read Your Form W-2 At Tax Time – Kelly Phillips Erb, Forbes

The tax form which most taxpayers are familiar with is anything but simple!  But Kelly encourages:

“You should have a basic understanding of what the form says and how it affects your bottom line.”

Bottled Spring Water Target of Taxes Once More – Ulrik Boesen, Tax Foudnation

“By including water extraction in existing legislation about extraction taxes, lawmakers imply that water extraction can be compared to extraction of other natural resources like oil and gas. While extraction of such nonrenewable resources is commonly taxed, they differ notably from water because water is renewable.”

Washington state bill would allow King County to tax big businesses with highly paid employees – Daniel Beekman, Seattle Times

“The money raised would have to be spent on affordable housing, public-safety needs, homeless services and behavioral-health services.”

How A VAT Could Tax The Rich And Pay For Universial Basic Income – William G. Gale, TaxVox

“A VAT is a national consumption tax—like a retail sales tax but collected in small bits at each stage of production. It raises a lot of revenue without distorting economic choices like saving, investment, or the organizational form of businesses. And it can be easier to administer than retail sales taxes.”

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