November 13, 2020 | Blog
To help economy, bank proposes tax on working from home – Kelvin Chan, AP News. “White collar staff reaping the financial benefits of working from home should be taxed to help other workers who aren’t getting the same advantages, experts at Deutsche Bank said in a new report.”
No, We Don’t Need a Federal Work-From-Home Tax – Jared Walczak, Tax Policy Blog.
“Remote work has both advantages and disadvantages, but it certainly isn’t hurting the federal government. It is not an undesirable activity to be curtailed by prohibitive taxation. The proposed remote work tax doesn’t fix a problem; it doesn’t even identify a problem worth fixing. It simply enacts a penalty on those able to work remotely.”
Progressive Tax Aspirations Thwarted by Split Congress – Jad Chamseddine, Tax Notes($). “Democrats may have an easier time addressing one TCJA expiring provision that would focus on improving innovation in the United States, Metcalf said. It allows companies to deduct the full cost of their research and development expenses immediately. After 2021, companies will have to amortize R&D costs over five years.”
Does your business look for ways to innovate its products, process, and services? Contact our R&D tax incentives team to find out how an R&D credit may work for you.
Divided Congress may slow new tax legislation – Roger Russell, Accounting Today. “Tax policy for the next two years, and therefore tax planning strategies, may be determined in Georgia early next year.”
Momentum grows for bipartisan retirement bill in divided Congress – Namoi Jagoda, The Hill. “Legislation to help Americans save for retirement is emerging as one of the few areas for bipartisanship on tax issues in a potentially divided Congress next year.”
“The new bill from Neal and Brady would expand automatic enrollment in retirement plans, allow groups of nonprofits to join together to offer retirement plans, simplify and expand the “saver’s credit” for low- and middle-income households that make retirement contributions, raise the age when people have to start taking required minimum distributions from 72 to 75 and allow employers to make matching contributions to retirement plans when employees make student loan payments.”
Democrats, Republicans in Familiar Stalemate Over COVID-19 Relief – Jad Chamseddine, Tax Notes($). “Republicans and Democrats in Congress appear unlikely to find a way forward on a COVID-19 relief package soon, with each side unwilling to budge from its position.”
Increasing the Tax Burden on Capital Investment and Automation Hurts Workers – Garrett Watson, Tax Policy Blog. “Recently, economists Andrea Manera and Daron Acemoglu of the Massachusetts Institute of Technology (MIT) and Pascual Restrepo of Boston University examined whether tax policy favors certain forms of automation that puts workers at a competitive disadvantage.”
California voters reject revamp to property tax system – Elliot Spagat, AP News. “California voters rejected a proposal to partially dismantle the state’s 42-year-old cap on property taxes, a move that would have raised taxes for many businesses in a pandemic-hobbled economy.”
Passthrough Deduction Reduced by SALT Cap Workaround, IRS Says – Eric Yauch, Tax Notes($). “Recent guidance that blessed the use of state taxes at the entity level to help business owners get around a deduction cap for individuals will likely affect the passthrough deduction, according to IRS officials.”
Form 1099: Filing Mistakes and How to Correct Them – Jillian Robinson, Eide Bailly. “An essential component of your year-end planning is information return filing. These forms come with a special set of rules. When not filled out properly, your business can be subject to penalties or other potential financial and reporting issues.”
Today in History: Vietnam Veterans Memorial dedicated
The memorial’s designer was Maya Lin, who at the time was an architecture student at Yale University.
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