DEAR BUBBAS AND BUBBETTES,

HERE IS SOME VERY WELCOME NEWS

On the 2nd of August, legislation was adopted by the House of Representatives that proposes to get rid of “Citizenship-Based Taxation”.  Hooray.

Take a look at page 8, Section 5 (F) of the attached legislative language and you will see that this legislation proposes transitioning to a globally competitive “territorial tax system.

Alas, the prospects of this Bill being adopted in the Senate, under its current Democratic majority, are very dim.

The article below in yesterday’s Wealth Strategies Journal gives a bit more background information on this, and if you go to the Library of Congress website there is much more:

http://thomas.loc.gov/cgi-bin/bdquery/z?d112:h.r.6169

Given the current impasse in the Congress, what do you think we should try to do next??  What would you be willing to do to try to help move this along??

All the very best and take care,  Andy

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IS A COMPREHENSIVE TAX REFORM ON THE WAY?

House Votes to Pass Bill for an Expedited Consideration of a Comprehensive Tax bill

Posted by Neda Barkhordar, Senior Associate Editor, Wealth Strategies Journal, 7 August 2012.

The House voted 232 to 189 to pass a bill that would allow for the speedy consideration and deliberation of  a comprehensive tax reform bill.

“The Pathway to Job Creation Through a Simpler, Fairer Tax Code Act of 2012” (H.R 6169) requires the tax reform bill to be presented to the House by the Means and Ways Chair by April 30, 2013. (See attached).

Further, it requires the Joint Committee on Taxation to find that it confirms to the five reform parameters, which include broadening the tax base, condensing the current six tax brackets into two tax brackets of 10% and not more than 25%, reducing the corporate tax rate to not greater than 25%, and imposing a territorial system of taxation. 

With a Democrat-led Senate, the chances the bill will pass are negligible.

 


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