Inflation Reduction Act’s corporate minimum tax deciders

admin August 4, 2022

0 6 minutes read

A bean counter that might give you supernatural powers

The Senate could vote on climate change and tax bills this week. If passed, the bill would give an unnamed group of accountants in Norwalk, Connecticut, considerable power.

Yesterday, a bipartisan group of former Treasury secretaries, including Hank Paulson and Timothy Geithner, backed the Inflation Reduction Act, a bill they said would fight inflation and address climate issues. It’s funded by the tax system,” he said.

Most of the bill will be funded by a minimum 15% tax on corporate profits. It’s meant to address a long-standing problem. Many profitable companies, including giants like Amazon, pay little or no federal income tax. It uses legitimate tax cuts, but it also uses strategies that many believe are aimed solely at avoiding taxes. The law requires companies with more than $1 billion in annual profits to pay at least 15% of their “book earnings” (the amount they report to shareholders, not the IRS) in federal income taxes. This figure is adjusted for various factors such as foreign taxes and research and development. credit.

This is where accountants come in. About 50 years ago, the SEC gave the SEC the responsibility to create and update the “Generally Accepted Accounting Principles” that determine how quarterly and annual earnings are calculated. Financial Accounting Standards Boardis a private organization funded by corporations and overseen by the Financial Accounting Foundation, a non-profit organization. FASB — pronounced “fasby” by those in the know — is 7 member board accountants and professional investors. One of his ways to tweak corporate America’s tax bill under the new tax code is to have his FASB rewrite how corporations calculate profits.

So what do we know about the authors of accounting rules and the foundation leaders who oversee them?

they are politically connected. Kathleen CaseyHe is chairman of the FASB’s board member nominating committee.
they are well compensated. Richard JonesThe former chief executive of accounting firm Ernst & Young and now chairman of the FASB, he received a base salary of $1 million last year, according to his tax returns.
They are not diverse. The board is composed of 4 white men and 3 white women. A FASB spokesman told DealBook that the organization, which was founded in 1973, had no board members of color.

The FASB chair has previously opposed a minimum corporate tax. Jones last year said in a speech He opposed imposing a minimum corporate tax based on book income. Using book earnings to determine tax payments injects public policy into financial accounting, Jones said, making it harder for his organization to do its job. “It definitely puts more pressure on our mission and what we do,” he said.

this is what is happening

Walmart is cutting its corporate workforce. about 200 Excluded include merchandising, global technology, real estate, and more.Walmart said it is investing in other areas and adding new positions.It is also reportedly planning Warner Bros. Discovery. layoffs and restructuring Months after being formed in a merger, Credit Suisse likely lay off thousands Because we’re aiming for $1 billion in cost savings.

Taiwan will rush to reroute civil air and sea traffic. China retaliates against neighbor for allowing House Speaker Nancy Pelosi to visit this week missile launched Created an effective blockade to invade and risk the waters off Taiwan shatter fragile peace regional.In South Korea today, Pelosi Avoid direct comments About China and Taiwan.

Stocks rebound after losing streak. All major indexes made a profit Yesterday, the S&P 500 rose 1.6% and the Nasdaq Composite rose 2.6%. Analysts pointed to strong earnings and a report showing the US services sector continued to expand in his July.stock futures flat this morning.

The Bank of England announced the biggest interest rate hike since 1995. If we raise interest rates by 0.5% this morning and household energy bills rise in October, we forecast annual inflation to reach 13%. This would be the UK’s highest level of inflation in 42 years.

Is the coal hot again? Coal company Glencore’s profits more than doubled, record $18.9 billion In the first half of the year, Ukraine’s aggression put pressure on energy prices and delayed plans to transition to the environment. But advocates for the U.S. coal industry say looming climate and tax deals Shrinking coal production The value of coal assets without providing suitable substitutes.

Twitter vs Mask Subpoena Blitzkrieg

Yesterday, Twitter and Elon Musk sent out another mass subpoena as they entered discovery mode for their legal battle. Among the subpoenas Musk has filed include Goldman Sachs and his JPMorgan Chase, banks that advised Twitter on the deal to sell to Musk. Twitter also sent subpoenas to several of Musk’s inner circle to investigate when and how he decided to terminate the deal.

Here are just a few of the people on Mask’s side, including many of the high-profile PayPal mafia.

David Sachs: Venture Capitalist and Founder and Chief Operating Officer of PayPal murmured He received a subpoena asking for more information about his tweets about the deal.At a conference Sacks co-hosted in May, Musk voiced one of his first concerns about Twitter’s bot, suggesting he could offer a cheaper price. You hinted that you might want a deal.And Sachs talked about the deal Megan Kelly PodcastA spokeswoman for Sachs had no comment.

Joe Lonsdale: The Palantir co-founder said, “I have nothing to do with this, other than a few sarcastic comments, but I received a written notice that said, ‘You are being ordered here.'” I’m here. murmured. on CNBC in June, Lonsdale said: Buying something without knowing the numbers is pretty scary. He also noted the broader market decline since the deal closed, but said he hadn’t discussed this with Musk. A spokesperson for Palantir didn’t respond to a request for comment.

Founders Fund: The venture is headed by the founders of PayPal and Palantir, who also helped found the company. A good friend of musk. Thiel didn’t invest in Musk’s Twitter deal, but at least he could suspect that Musk told him about it. A Thiel spokesperson did not respond to a request for comment.

Other listings: Linda Ye and Robin Ren Family Foundation (Robin Wren is a former top Tesla executives); Tesla When space xboth companies run by Musk. brookfieldcommitted equity to the transaction. Ken Griffin, the billionaire founder of Citadel. and dozens of others.

“Mr. Jones, did you know that 12 days ago your attorney made a mistake and sent you a digital copy of your entire cell phone along with every text message you have sent in the last two years?”

— Mark Bankston, attorney for family of Sandy Hook shooting victims suing conspiracy theorist Alex Jones for defamation cross-examination yesterday.

Birdie, Bogey, Antitrust

Eleven golfers in the Saudi-funded LIV Golf Series yesterday appealed their suspension from the PGA Tour. The complaint alleges that the PGA Tour unfairly controls its players through anti-competitive restrictions to protect its longstanding monopoly in professional golf.

“To defend the right of professional golfers to choose when and where they play and to ensure professional golf continues to innovate and grow,” John Quinn of Quinn Emanuel, one of the plaintiffs’ attorneys, said in a statement. I have filed this lawsuit.” to the dealbook.

The LIV Golf Circuit is funded by the Saudi Sovereign Wealth Fund. With huge upfront payments and performance fees, he has poached some of the biggest names on the PGA Tour. Phil Mickelson, who won his six-time major in his tournament, reportedly received $200 million. The circuit has become a lightning rod for human rights activists who accuse Saudi Arabia of using sport to tarnish its reputation.

The Tour is “the undisputed monopoly that controls professional golf” Complaint alleges. According to the athlete’s attorney, prior to the recent arrival of LIV Golf, elite golfers “had no meaningful choice” but to work with the Tour. Now that the LIV is luring them in with big prize money, the tour is punishing those who “are afraid to go against the tour and play in tournaments hosted by newcomers,” they argue.

The Tour might claim that Renegade golfers are “free-riders.” The organization has invested time and money in providing a platform for golfers to build careers, said K. Craig Wildfang, an antitrust expert and former special counsel for the Justice Department’s Antitrust Division. I’m here. His Wildfang, who was not involved in the case, said it could take years to resolve. The PGA Tour did not respond to DealBook’s request for comment.

The wind may be blowing on the athlete’s back. Professional golfers say illegal restrictions on tours limit their ability to earn. Did.Student-athletes are chipping away at NCAA payment bans, and swimmers are antitrust battle against their sports governing body.

speed lead

bargain

policy

Gov. Gavin Newsom used Hollywood’s concerns over new abortion regulations in other states to give studios do more business in California. (LA Times)
EU is reportedly investigating Google Play Store for antitrust violations. (politics)
“Why America’s China tech ban didn’t take hold” (NYT)

best of the rest

Due to economic recession concerns and declining viewership wiped out about $400 billion It’s valuable for big media companies. (FT)
Triller, TikTok aspirant, millions promised Black creators were paid, but irregularly. (wapo)
Podcast guests are paying up to $50,000 Appeared in top shows. (Bloomberg)
Jeff Bezos’ megayacht pulled away from Dutch shipyard Threat of Egging. (New York Post)