Domestic Taxes

Corporations backing a broad deal to reduce deficits have racked up millions of dollars of savings from the tax treatment of executive compensation, according to a new study from liberal groups.

The study found that the 88 of the 90 publicly-held companies aligned with the Campaign Fix the Debt used an took advantage of an incentive for performance-based payments like stock options.

For around two decades now, corporations have only been able to write off up to $1 million of executive pay – but, as the Institute for Policy Studies and the Campaign for America’s Future note, that limit does not apply to performance-related compensation.

In all, corporations in Fix the Debt were able to save anywhere from $953 million to $1.6 billion between 2009 and 2011 because of the tax treatment of performance-based pay, the study says.

“The performance pay loophole, in short, serves as a critical subsidy for excessive compensation,” the study says. “The larger the executive payout, the less the corporation pays in taxes. And average taxpayers wind up footing the bill.”

But the influential Republican said he does not support the tax bill that's likely to pass the Senate.

Lawmakers in both parties are already touting their favorite pet projects for inclusion in tax reform.

A new GOP effort to pass tax reform by tying it to the next increase in the nation’s debt ceiling could split Democrats.

Conservative heavyweights have "strong concerns" with the proposal to slow the growth of entitlement spending.

The issue has received such scant attention that neither John Boehner nor Eric Cantor has taken public positions.

A pair of Democratic senators has introduced legislation to permanently extend enhanced versions of the Earned Income Tax Credit (EITC) and the child tax credit.

The bill from Senate Majority Whip Dick Durbin (D-Ill.) and Sen. Sherrod Brown (D-Ohio) would also expand eligibility for the EITC and the child credit.

“Enhancing the earned income tax credit should be a bipartisan goal, as President Reagan called EITC the most effective tool in fighting poverty,” Brown said in a statement. “We need to reward Americans who work hard and play by the rules and ensure that they can work and continue to take care of their families.”

“This bill is pro-family, pro-work legislation that would permanently extend critical refundable tax credit provisions that have helped lift millions of working families out of poverty,” Durbin added.

More revenues plus less spending could equal a delayed debt-ceiling fight.

Southern Europe's economy could help drag down the north.

Federal Reserve Vice Chairwoman Janet Yellen's views on unemployment now center stage at the Fed.

Fed wonders if banks can handle interest rate rise.

New York looks to expedite trial of former AIG chief.

A senior Democrat on the House Ways and Means Committee has introduced legislation to permanently extend an education tax credit beloved by many Democrats.

Rep. Lloyd Doggett’s (D-Texas) office says his bill would also make the American Opportunity Tax Credit (AOTC) more accessible to students with Pell grants.

“Higher education success should depend on how hard you work, not how much you can afford to spend,” Doggett said in a statement. “Making this tax cut for tuition and textbooks permanent and easier to claim for families is critical to our future competitiveness.”

The Senate advanced a bill to allow states to collect online sales tax and will vote on it May 6.