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November 28, 2022

Accounting News Roundup: Nike’s Sweetheart Deal; The Terminator’s Taxes; An Evolving 1040; | 12.14.12

Debate Grows in GOP Over Tax Stance [WSJ]
[S]ome Senate Republicans have been talking about an alternative path that would allow passage of legislation extending current tax rates for income up to $250,000, while allowing the top rates to rise to Clinton-era levels. "We're realists from the standpoint that we realize we don't have any real negotiating leverage in this process," said Sen. Ron Johnson (R., Wis.). "We may be forced to acknowledge reality and say all we can do is limit the damage."

Why the Senate’s Tax Bill is No Way Out of the Fiscal Impasse [TaxVox]
Howard Gleckman: "It makes no effort to set permanent tax policy, and will leave taxpayers in exactly the same situation a year from now as today, except with somewhat lighter pockets."
 
Nike Presses for 40-Year Tax Deal in Oregon [WSJ]

The world's biggest sneaker maker is expanding its operations in the U.S. and has threatened to move if Oregon cannot guarantee its corporate tax structure will remain the same. Gov. John Kitzhaber is asking lawmakers to grant him the authority to ensure that the state's method of determining corporate taxes won't change for companies, like Nike, that fit very specific criteria: Will invest $150 million in the state over five years and create 500 jobs. Nike—the second-biggest company in Oregon by employees and revenue—is contemplating an expansion of its Beaverton, Ore., headquarters that would exceed those thresholds. Nike said it first wants assurance its state tax burden isn't going to increase. Under the proposed law, it could get such a promise for up to 40 years.

Arnold Schwarzenegger: 'I love paying my taxes!' [Politico]
“I always tell my accountant, If you’re in doubt about taxes, pay more."

Most Pakistani Leaders Don’t File Returns, Study Finds [NYT]
FYI.
 
Line for line, US income taxes are more complex than ever [Quartz]
The 1040 has been the primary American tax form since the introduction of the personal income tax in 1913. That’s even been the form’s name since the very beginning. But what started as a simple document with 27 lines of information to fill out has grown ever more complex: the current 1040 has 77 line items—plus a 189-page appendix of instructions.
 
Hostess Said to Attract Bids From Wal-Mart, Kroger [Bloomberg]

There are about two dozen bidders, said the person, who asked not to be named because the process is confidential. Last month, financial adviser Joshua Scherer of Perella Weinberg Partners LP said the liquidation sale may generate about $1 billion. A few of the bids are for all the assets, some are for just the cakes or breads businesses, and others are interested in individual Hostess plants or products, according to the person. Other first-round bidders include Grupo Bimbo SAB and Alpha Baking Co., the person said.

Vodka Saves Elephants: Circus Trainers Claim Alcohol Protected Animals From Deadly Siberian Cold [AP]
Emergency ministry spokesman Alexander Davydov said Friday that the elephants were in a trailer that caught fire Thursday outside the city of Novosibirsk, forcing trainers to take them out into the bitter cold before another truck arrived to deliver them to a warm gym at a local community college.The Komsomolskaya Pravda daily reported that trainer Leonid Labo had the animals, aged 45 and 48, drink 10 liters (2.6 gallons) of vodka diluted in warm water – and a veterinarian said later that only the tips of their ears were frostbitten. Although scientists say that alcohol can make humans feel warmer but actually lowers their core body temperature, Novosibisk zoo director Rostislav Shilo told the daily that the vodka saved the animals from frostbite and pneumonia, without harming or even intoxicating them.

 

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