Do you recall all the talk of online sales tax legislation last year? If not, it won’t be long before these memories are once again creeping into your head.
Despite the fact that the Senate passed legislation in 2013 giving states the ability to collect tax on internet purchases, the House rejected it.
However, the discussion revolving around online sales tax is making a comeback, with many believing it has the chance of passing in the near future.
The supporters of this bill are not going away. Instead, they believe now is a golden opportunity to push things in the right direction.
The reason why this conversation remains at the forefront is simple: brick and mortar stores feel they are at a disadvantage, due to the fact that they have to collect sales taxes, something that online establishments have been able to avoid.
On the other side of things, you have online retailers arguing that it is entirely too complicated to monitor and manage the hundreds of state and local taxes that exist throughout the country.
Are you ready for the roller coaster ride to continue?
Tax Inversions Remain Common
Many United States based companies are taking advantage of tax inversions, which allows a company to acquire a smaller firm in a tax-friendly region, such as the U.K., as a means of improving its tax situation.
According to a detailed examination by the Wall Street Journal, these “deals are driven by planning to avoid paying the U.S. tax that applies when firms repatriate their low-taxed foreign earnings to the U.S.”
While the companies that invert claim that this is 100 percent legal (and it is) and not harmful to the United States, there are still questions as to whether or not the laws should be changed to protect against this, ensuring the security of the U.S. domestic corporate tax base.
The tax filing deadline may have passed a few months back for individuals, but there is always tax related news worth paying attention to.