Daily Tax Update - July 1, 2013: Tax-Writing Chairmen Announces First Stop on Nationwide Tax Reform

THE DAILY TAX UPDATE WILL BE PUBLISHED ON A PERIODIC BASIS UNTIL CONGRESS RETURNS JULY 9

Tax-Writing Chairmen Announce First Stop on Nationwide Tax Reform Tour: Today, House Ways and Means Committee Chairman Dave Camp (R-MI) and Senate Finance Committee Chairman Max Baucus (D-MT) announced visits to two separate businesses in the Minneapolis-St. Paul, Minnesota area.   According to the Chairmen, “The visits are the first in a series of trips across the nation so the Chairmen of the two tax-writing committees can hear directly from Americans about how to spark a more prosperous economy and make today’s broken tax code fairer for families and job creators.”  The Chairmen plan to visit 3M Headquarters and Baldinger Bakery.

“Over the past two years we’ve heard from hundreds of experts on how to fix the tax code to make it simpler for families and spark a more prosperous economy.  We want even more input and want to hear directly from the American people.  That is why we are going around the country and starting off in St. Paul, meeting with leaders in business — big and small,” said Chairman Dave Camp and Chairman Max Baucus.  “We want to hear how we can improve their experience with America’s tax system.  We’re going to be travelling across the country in the coming weeks, meeting with Americans – individuals, families, workers and business owners, big and small.  We want to hear how we can make the system fairer and easier to deal with for families across America.”

GAO Releases Report on Effective Tax Rates:  According to a Government Accountability Office (GAO) report, large corporations paid an average effective federal tax rate of approximately 13%.  The report states, “For tax year 2010 (the most recent information available), profitable U.S. corporations that filed a Schedule M-3 paid U.S. federal income taxes amounting to about 13 percent of the pretax worldwide income that they reported in their financial statements (for those entities included in their tax returns).  When foreign and state and local income taxes are included, the ETR for profitable filers increases to around 17 percent.”