U.S. Senator's Proposed Cut Loopholes Act Contains Familiar International Provisions

Worldwide Tax Daily
February 14, 2012

Douglas S. Stransky was quoted in an article entitled "U.S. Senator's Proposed Cut Loopholes Act Contains Familiar International Provisions," published in Tax Analysts Worldwide Tax Daily on February 14, 2012. In the article, Mr. Stransky commented on a bill introduced February 7 by U.S. Sen. Carl Levin, D-Mich., aimed at eliminating "unjustified" tax breaks. Mr. Stransky expressed his concern "that the senator would use the word 'unjustified' in naming his bill. Whether any of the current provisions in the Internal Revenue Code are tax loopholes might be open to debate, but one cannot declare that the tax laws that the U.S. Congress has previously debated and passed are 'unjustified.'" Mr. Stransky also commented that "Levin's bill simply recycles proposals that he has previously introduced. If Levin's bill were enacted, it would move the U.S. farther away from its competitors in terms of tax policy and hurt, rather than help, the economy. It's a shame that a U.S. Senator would use this election season and discussions about extending the payroll tax cut, for example, to propose a recycled bill that purports to reduce the budget deficit, which was created by out-of-control spending on his watch, to argue that his draconian proposal would increase tax revenues." In sum, Mr. Stransky observed that the "Senator's focus should be on reducing the uncompetitive U.S. tax rate and encouraging job growth and investment by less regulation."