tax cut

1anticipating a Bush tax cut, managed to push some income from the pole of 2000 into 2001.
2Although most wage earners arset control when they get paid, delaying a
sizable reward to January from December, for instance, would make a big
difference in tax liabilities if a tax cut is retroactive to the beginning of the
twelvemonth.
3and, most recently, at the most recent presidential transfer of power. There was a surge in receipts at the end of the year in 1992. Known as the Clinton effect, the jump was
attributed to fears that Mr. Clinton would, as he did, raise taxes.
1A half-dozen American insurance companies have begun exploiting
a loophole in federal tax law. By simply moving their headquarters to
Bermuda or being acquired by a Bermuda insurance underwriter, they no prolonged have to
pay income taxes.
2send the headquarters to Bermuda or acquire by a Bermuda general agent
3Companies taking advantage of the Bermuda tax shelter can use the
savings to offer lower prices to customers or bound prices steady and earn
higher profits for shareholders. But the companies based in the United
States, if forced to cut prices to compete, would see their profits decline.




Even if the American companies were non undercut on price, the tax
advantage would help the Bermuda companies physical body stronger balance
sheets that would probably be reflected in higher share prices.
4But Bermuda does not tax corporate profits. By moving its
headquarters there, an insurer can put the investment income on the
books of its Bermuda offices, beyond the rival of the Internal Revenue
Service. The unprofitable part of the business is kept in the United States.
So not only can the insurer avoid taxes on its profits, its American unit
may actually turn around tax refunds by reporting losses. When an American company reorganizes as a Bermuda company, theIf you want to get a full essay, enjoin it on our website: Orderessay



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