September 30th marked the end of the 2013-2014 fiscal year. And because agencies cannot carry their funds over from year to year, explains Brianna Ehley of the Fiscal Times, federal agencies tend to spend September 30th on a shopping spree, spending the rest of their funds before they lose them. In 2013, federal agencies spent $50 billion in the last week of the fiscal year — the Department of Veterans Affairs purchased $562,000 worth of artwork, while the Department of Agriculture bought $144,000 in toner. The Department of Defense spent $5.5 billion on September 30, 2013, sending emails to employees telling them to spend the rest of their funds. This year, spending has again exploded. Already in September, the IRS has purchased $2.4 million in toner, while the Department of Homeland Security spent more than $15,000 on two pianos. The American embassy in New Delhi, India, bought $20,362 in alcohol.
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 firstname.lastname@example.org with your information or request. Editorial submissions are subject to review.
How does your state compare to its neighbors?
Washington, DC (Sept 17, 2014)—This morning, the nonpartisan Tax Foundation released its bi-annual report on state and local sales tax rates throughout the U.S. The report details the significant recent changes that have taken place in states’ treatments of sales taxes. Using a population-weighted average of local sales taxes, the piece also details the combined state and local sales tax rates for each state and explains how sales taxes fit into a state’s overall tax structure.
Note from the IMA: The Illinois Manufacturers’ Association opposed SB 3324 and asked Governor Quinn for a veto. The IMA is leading a coalition to repeal this new tax that was passed under false pretense.
McGladrey TAX ALERT | September 16, 2014
On Aug. 15, 2014, Illinois Governor Pat Quinn signed SB 3324, Public Act 98-0978 (the Act), amending the state’s insurance self-procurement tax effective Jan. 1, 2015, to narrow the definition of exempt industrial insureds, effectively expanding the applicability of the tax to many businesses that were previously exempt.
The Illinois insurance self-procurement tax is a 3.5 percent insurance premiums tax imposed on Illinois-based businesses that procure insurance from non-Illinois insurers that are not licensed to do business in the state. Under current law, the state provides a self-procurement tax exemption for industrial insureds.
New study reveals Estonia, New Zealand, and Switzerland have most competitive tax codes
The United States has the 3rd least competitive tax code in the OECD, trailed only by Portugal and France, according to the 2014 International Tax Competitiveness Index (ITCI) released this morning by the nonpartisan Tax Foundation. The report finds that Estonia (#1), New Zealand (#2), and Switzerland (#3) have the most competitive tax codes among developed nations.
The ITCI attempts to determine which countries provide the best tax environment for investment and business growth and development. It does this by measuring the competitiveness of tax systems in the OECD’s 34 countries based on over 40 tax policy variables in five categories: corporate income taxes, individual taxes, consumption taxes, property taxes, and the treatment of foreign earnings.
by Sarah Waters, Director | McGladrey PERSPECTIVE | September 09, 2014
When employees are selected to work outside their home country (referred to as expatriates or expats), they may face many concerns. These can include settling into their new home, helping their children get adjusted to a new school and learning the local language, all while focusing on performing well in their new job position. The last thing the expat needs added to the list is concern around their compensation and the global tax rules that may impact them. Although well-intentioned, most manufacturing CFOs and human resources personnel are not aware of all the compensation and tax issues that might impact an expat, and therefore, cannot address these issues when working out the details of the expat’s proposed assignment overseas. Experience shows that good assignment planning before the assignment begins is important and will help minimize issues down the line.