Daily Tax Update - June 7, 2013: Ways and Means Schedules Tax Reform Hearing on Tax Havens, Base Erosion, and Profit-Shifting

Ways and Means Schedules Tax Reform Hearing on Tax Haves, Base Erosion, and Profit-Shifting:  On June 13, the Committee on Ways and Means will hold a hearing on “U.S. and foreign multinational corporations’ use of tax havens (low- and no-tax jurisdictions) to avoid tax and shift profits outside the United States and erode the U.S. tax base.”

In announcing the hearing, Chairman Camp said, “The use of tax havens as part of corporate tax avoidance strategies narrows the U.S. tax base and requires other taxpayers to pay higher rates on both domestic and overseas income.  There is widespread agreement amongst academics, economists, and lawmakers that these practices are both unfair to taxpayers who aren’t able to engage in these strategies and harmful to the U.S. economy.  The Committee’s discussion draft on international tax reform included options to combat base erosion as part of a larger effort to broaden the tax base, lower tax rates and move towards a more modernized and competitive system of international taxation.  As the Committee works to design tax reform policies that make our broken tax code simpler, fairer and more conducive to creating jobs and increasing wages, understanding the impact of these practices will result in more informed policymaking.”

Finance Committee Releases Tax Reform Options Paper on "Types of Income and Business Entitites":  Today, the Senate Finance Committee released the eighth in a series of tax reform options papers. 

The document can be accessed via: Types of Income and Business Entities

Miscellaneous Guidance Released:
Notice 2013-37 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008.  It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2).  In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.  The rates in this notice reflect certain changes implemented by the Moving Ahead for Progress in the 21st Century Act, Public Law 112-141 (MAP-21).

Tax Bills Introduced June 6:

1. [113rd] H.R.2288 : To amend the Internal Revenue Code of 1986 to modify the exclusion for transportation benefits.
Sponsor: Rep Grimm, Michael G. [NY-11] (introduced 6/6/2013)      Cosponsors (3) 
Committees: House Ways and Means 
Latest Major Action: 6/6/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


2. [113rd] H.R.2289 : To rename section 219(c) of the Internal Revenue Code of 1986 as the Kay Bailey Hutchison Spousal IRA.
Sponsor: Rep Johnson, Sam [TX-3] (introduced 6/6/2013)      Cosponsors (7) 
Committees: House Ways and Means 
Latest Major Action: 6/6/2013 Referred to House committee. Status: Referred to the House Committee on Ways and Means.


3. [113rd] S.1103 : A bill to amend the Internal Revenue Code of 1986 to provide for the equalization of the excise tax on liquefied natural gas and per energy equivalent of diesel.
Sponsor: Sen Bennet, Michael F. [CO] (introduced 6/6/2013)      Cosponsors (1) 
Committees: Senate Finance 
Latest Major Action: 6/6/2013 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.