Welcome to the IMA Tax Policy Blog. The blog format reflects our efforts to provide IMA members with timely, relevant and thought provoking information in a form that is accessible for easy reference. IMA’s Tax Policy Blog will be updated on a regular basis. Weekly news update emails will be sent out to notify subscribers of new information posted on the blog. IMA members are welcome to submit material for the blog, or request specific information. Simply email Editor Stefany Henson at shenson@ima-net.org with your information or request. Editorial submissions are subject to review. 

Wednesday
Aug262015

From McGladrey: 2015 Manufacturing & Distribution Monitor

Insights on global growth, innovation and information technology

With employment and wages in the United States rising and the dollar gaining strength, it is tempting to think that the U.S. economy has recovered. Although expectations are not quite as high as they were at the beginning of 2015, the outlook for manufacturing remains positive and industry executives anticipate healthy profits to come in the next 12 months, according to the 2015 McGladrey Manufacturing & Distribution Monitor survey.

Industry executives in U.S.-based companies, however, are being challenged as never before by offshore competition. Because the U.S. economy has made the domestic market so attractive — and as other markets are less economically stable or saturated by local companies — more than half of the non-U.S. manufacturers planning to sell products and services outside their home countries are entering the U.S. market.

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Wednesday
Aug262015

What Would Happen to the U.S. Economy If We Had Another Country’s Corporate Tax Rate?

By Richard Borean, The Tax Foundation

Policymakers in Washington are currently discussing ways to improve U.S. competitiveness in the global economy, and there are a lot of options on the table. Some proposals include converting to a territorial tax system or creating an “innovation box” to lower the tax rate on patents and intellectual property. However, policymakers would be wise to remember that one of the most important factors in international competitiveness is the corporate income tax rate, and that, at 35 percent, the U.S. has the highest rate in the industrialized world.

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Wednesday
Aug192015

IRS Warns Taxpayers to Guard Against New Tricks by Scam Artists; Losses Top $20 Million

Following the emergence of new variations of widespread tax scams, the Internal Revenue Service today issued another warning to taxpayers to remain on high alert and protect themselves against the ever-evolving array of deceitful tactics scammers use to trick people. These schemes — which can occur over the phone, in e-mails or through letters with authentic looking letterhead — try to trick taxpayers into providing personal financial information or scare people into making a false tax payment that ends up with the criminal. The Treasury Inspector General for Tax Administration (TIGTA) has received reports of roughly 600,000 contacts since October 2013. TIGTA is also aware of nearly 4,000 victims who have collectively reported over $20 million in financial losses as a result of tax scams.

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Tuesday
Aug112015

McGladrey Survey: U.S. Market Is Attracting Strong Global Competition

Economic recovery invites influx of foreign manufacturing, distribution firms

Three in four global manufacturing and distribution executives expect profits to increase, and the sector is projecting an average growth rate of 10 percent over the next 12 months, according to an annual survey gauging middle market sentiment conducted by McGladrey LLP, the nation’s leading provider of assurance, tax and consulting services focused on the middle market.

Globally, executives expect average sales to increase 12 percent over the next 12 months. They also plan to increase domestic hiring by roughly 8 percent.

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Tuesday
Aug112015

Of Loopholes and Tax Expenditures

By Alan Cole, The Tax Foundation

Conversations about “loopholes” in the tax code are often unproductive. “Loophole” is a loaded word, one that sneaks in hidden assumptions without justifying them. But loaded words are often effective; especially, apparently, the word “loophole.” As a result, the word has been used far too often and applied in all sorts of inappropriate situations. The end result has been a debate crippled by equivocation. Here’s what I mean by that.

To describe something as a “loophole” has a built-in negative emotional response to it. The word is traditionally used to describe an unintended provision (or lack of a provision) in a law or a contract that allows someone to avoid their obligations. In taxes, for example, that could be a gap in the income tax that allows people to earn untaxed income.

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