New Tax Bill Would Limit Offshore Compensation Deferrals

Jul 25 2008 | 8:32am ET

If at first, or second, or third, you don’t succeed, try to raise taxes on hedge fund managers again.

Senate Democrats will again try to push through a tax bill, which would place new limits on deferring taxes on offshore compensation next week. Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, released a new version of the bill last night, which includes billions in tax credits and would keep the alternative-minimum tax from spreading to more taxpayers this year.

Baucus’ bill would offset $16.8 billion in energy-related incentives and research and development tax credits by limiting tax-deferred offshore compensation and delaying for a decade a tax change benefiting multinational corporations. Those two changes would net $54 billion in new revenue over 10 years. Unlike earlier bills, it does not attempt to increase taxes on “carried interest” or offset the loss in revenue from the AMT patch.

Republicans have refused to back similar bills to date, arguing that the lost revenue does not need to be replaced, but Baucus’ latest effort includes $5 billion in disaster relief funds, which could sway Midwestern senators whose home states have been hit by recent flooding.

 


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note