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Tuesday, June 17, 2014

Taxes

Econ Comments & Analysis                                                                                            
Bloomberg | Offshore Cash of $2 Trillion Sparks Hunt for Tax-Friendly Deals
Two tax-code quirks -- one that charges U.S. companies when they repatriate overseas earnings, the other that allows them to claim a foreign domicile without moving their senior leadership abroad -- are motivating U.S. companies to buy overseas counterparts in part to lower their bills.
WSJ | Obama's Corporate Exodus
What kind of country does this to itself? With Medtronic's planned acquisition of Covidien and the announcement that the combined company will be domiciled in Ireland, U.S. tax policy has encouraged one more business to spend its money overseas. Medtronic, famous for its high-tech cardiac and spinal devices, will pay $42.9 billion for Dublin-based Covidien, which makes surgical tools and other medical supplies.

Blogs                                                                                                                             
WSJ | Japan Weighs Tax Change to Push Housewives Into Job Market
The change, part of a set of fiscal policy proposals released June 10, could impel some women to work more, helping alleviate labor shortages and increasing tax revenue. However, it would raise the burden for spouses who mostly stay at home, and some observers say the change by itself wouldn’t be enough to bring a significant number of women into the workforce.
WSJ | Deadline Could Force Grand Bargain on Internet Taxes
This week, a House committee is expected to vote to renew a longstanding federal moratorium on Internet-access taxes. The 15-year-old moratorium on Internet access taxes prevents most states and local governments from applying telecommunications excise taxes and other levies on Internet connections, of which there are about 262 million in the U.S.