Republicans plan to unveil their long-awaited tax reform package on November 1. Although the nine-page tax reform framework released in September was short on details, the plan highlights key changes to the tax code intended to reduce the tax burden on both individuals and companies, spark economic growth in the U.S., and make the tax laws more globally competitive.
Over 10 years, the stock of U.S. direct investment in Canada grew continuously, but the U.S. share of Canadian FDI decreased. Changes to Canada’s foreign investment regime may help sustain the upward trend of U.S. investment stock by making it relatively easier for private U.S. businesses to invest in our northern neighbor.
Finance, Tax, U.S. Tax, Federal Tax Rules & Regulations, U.S. Tax Policy, Global Economy, Money & Finance, Government Finance
In early March, President Obama sent his official FY15 budget to Capitol Hill. Judging by the reception, not just from House Republicans but from a jaded White House press corps, the proposal is clearly DOA. It’s not the first proposed budget to get such a congressional snub. But considering the White House’s cavalier approach to this budget, and Congress’s inability to agree to a formal spending plan over the past decade, the budget process created almost a century ago is in desperate need of reform.
Manufacturing sector activity, as measured by the Federal Reserve Board’s industrial production index, grew by just 2.3% in 2013, down from 3.9% in 2012. Activity in the fourth quarter, however, grew at an annualized rate of 6.2%. Despite relatively slow growth, various benchmarks indicate that the manufacturing sector’s overall financial performance in the third quarter of 2013 improved on a year-over-year basis and is vastly better than it was during the contraction as the Great Recession took hold. If, as MAPI forecasts, manufacturing activity grows at a faster rate in 2014 and 2015, the solid financial performance of the past year should continue.
Finance, Tax, U.S. Tax, Federal Tax Rules & Regulations, U.S. Tax Policy, Leadership, Human Resources, Benefits, Health Benefits
Proposed rules released by the IRS explain how large employers will be assessed if they fail to provide affordable health insurance coverage to their full-time employees and dependents. Understanding the definitions for these terms is key to what the rules do. A “large employer” has more than 50 full-time employees. “Full-time employees” work at least 30 hours per week, but two employees who each work 15 hours per week equal one full-time employee for purposes of the calculation. “Affordable coverage” depends on the employee’s income and the benefits offered, which should exceed an as-yet undefined level of minimum essential coverage. And the benefits must be offered to dependents.
Finance, Tax, U.S. Tax, Federal Tax Rules & Regulations, U.S. Tax Policy
In the early hours of 2013, Congress and the White House were able to avert an immediate fiscal crisis. The last-minute deal delayed deep, automatic spending cuts and did not address the debt ceiling, setting the stage for upcoming battles over spending and the deficit. The American Taxpayer Relief Act of 2012 does, however, contain several tax provisions important to manufacturers. The package provides some much-needed certainty with respect to the individual rates, helping businesses taxed as flow-through entities, but it does not solve many of the deep, underlying problems with the tax code that undermine the United States’ economic growth and international competitiveness.