US CHAMBER OF COMMERCE BLOG: Keeping the Dream Alive
By, Thomas J. Donohue is president and CEO of the U.S. Chamber of Commerce.https://www.uschamber.com/above-the-fold/keeping-the-dream-alive
The Justice Department announced in September that it would end the Deferred Action for Childhood Arrivals (DACA) program in March 2018. DACA gives temporary legal status to nearly 800,000 young people who were brought to the U.S. illegally as children through no fault of their own. In announcing the end of this program, President Trump started a six-month countdown for Congress to come up with a permanent solution for the Dreamers. Tomorrow, December 5, marks the halfway point—and we’re still waiting.
The U.S. Chamber of Commerce is asking Congress to act by the end of the year to protect the Dreamers. We are passionate about this issue because it is a matter of principle and fairness. Most Dreamers have been in the U.S. for as long as they can remember—they know no other home. The only difference between them and their American peers is their legal status.
Just as important, protecting Dreamers is critical for our economy. Hundreds of thousands of these young people contribute their talents to our economy in integral ways. Some DACA recipients have already lost their legal status. The longer Congress waits, the more Dreamers will lose their ability to work here legally and become subject to immediate deportation. This will cause serious disruptions in the business operations of the companies that employ them, which is why many business leaders have spoken out and demanded action on this issue.
In some cases, Dreamers not only work for American companies. They launch American companies. Javier Velazquez is a 21-year-old entrepreneur who started a digital marketing business, Uproot Online, which employs six Americans. He told his story at a recent event at the Chamber.
“I’m proud to create jobs for Americans and help our economy grow by paying taxes,” Velazquez said. “I now help more than 100 small businesses in the U.S. and Canada grow their digital footprint.” But Velazquez knows that without congressional action his days of contributing to the country he loves are numbered. “I won’t be able to continue operating my company or help small businesses compete in their local economies.”
If Congress doesn’t act soon, Velazquez’s American Dream will come to an end, along with the dreams of 800,000 others like him. Losing these young people would be a tragedy not just for them but for American businesses and our entire economy. Congress must set aside its differences and take decisive action to protect the Dreamers once and for all.
US CHAMBER OF COMMERCE: The Alternative Minimum Tax Bombshell
https://www.uschamber.com/above-the-fold/the-alternative-minimum-tax-bombshellEarly Saturday morning Senate Republicans passed a major pro-growth tax reform bill. As U.S. Chamber President and CEO Tom Donohue said, “The decades-long drive toward meaningful tax reform is closer than ever to becoming a reality.”
The Senate’s package would lower rates for all businesses, shift the United States to a more globally competitive territorial tax system, and lower individual taxes, among other things.
Among those other things? A very unpleasant surprise in the form of the reinstatement of the corporate alternative minimum tax (AMT).
Repeal of the AMT has long been one of the policy pillars for pro-growth tax reform. It’s a step toward better tax policy because the AMT itself, like much of our current tax code, is an antiquated anachronism.
Retaining the AMT in reform is even more harmful than it is in its present form — among other things, it eviscerates the impact of certain pro-growth policies like the R&D tax credit and exacerbates the international anti-abuse rules. This cannot be the intended impact from a Congress who has worked for years to enact a more globally competitive tax code.
As we’ve said on more than one occasion, this is a once-in-a-generation opportunity to reform our outdated and anti-competitive tax code. The U.S. Chamber wants tax reform to be as pro-growth as possible, and that means repealing the AMT.
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U.S. DEPARTMENT OF LABOR PROPOSAL GIVES FREEDOM TO SHARE TIPS BETWEEN TRADITIONALLY TIPPED AND NON-TIPPED WORKERS
Press release issued 12/ 4/ 17https://www.dol.gov/newsroom/releases/whd/whd20171204
WASHINGTON, DC – The U.S. Department of Labor today announced a Notice of Proposed Rulemaking (NPRM) regarding the tip regulations under the Fair Labor Standards Act (FLSA). Under the proposed rule, workplaces would have the freedom to allow sharing of tips among more employees. The proposal would help decrease wage disparities between tipped and non-tipped workers – an option that is currently restricted by a rule promulgated in 2011 that has been challenged in a number of courts.
The Department’s proposal only applies where employers pay a full minimum wage and do not take a tip credit and allows sharing tips through a tip pool with employees who do not traditionally receive direct tips – such as restaurant cooks and dish washers. These “back of the house” employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers. The proposal would not affect current rules applicable to employers that claim a tip credit under the FLSA.
The Department of Labor promulgated tip regulations in 2011 that restricted this option. Since 2011, there has been a significant amount of litigation involving the tip pooling and tip retention practices of employers that pay a direct cash wage of at least the federal minimum wage and do not claim a FLSA tip credit. There has also been litigation directly challenging the Department’s authority to promulgate the provisions of the 2011 regulations that restrict sharing of tips.
Moreover, in the past several years, several states have changed their laws to require employers to pay tipped employees a direct cash wage that is at least the federal minimum wage. This means that fewer employers can take the FLSA tip credit. The Department’s proposed new rule follows these developments, along with serious concerns that it incorrectly construed the statute when promulgating the 2011 regulations.
The NPRM will be published in the Federal Register on Dec. 5, 2017, and be available for public comment for 30 days. The Department encourages interested parties to submit comments on the proposed rule. The NPRM, along with the procedures for submitting comments, can be found at the Wage and Hour Division’s Proposed Rule website.
STATEMENT BY U.S. SECRETARY OF LABOR ACOSTA ON SENATE PASSAGE OF TAX REFORM
Press release issued 12/ 2/ 17https://www.dol.gov/newsroom/releases/osec/osec20171202
WASHINGTON, DC – U.S. Secretary of Labor Alexander Acosta issued the following statement today regarding Senate passage of the tax reform bill:
“Senate passage of tax reform is continued good news for America’s job creators and job seekers. Reducing taxes and reforming the tax code will help businesses of all sizes hire more Americans and invest in the workforce. President Trump has brought a spirit of economic optimism back to our nation, with nearly 1.5 million jobs created since January, the lowest unemployment rate in 17 years, and two consecutive quarters of GDP growth over 3 percent. Tax reform will create the conditions for continued economic growth and even more job creation.”
Federal Reserve Board requests public comment on proposal to amend Regulation A
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20171204a.htmThe Federal Reserve Board on Monday requested public comment on a proposal to amend its Regulation A, which governs extensions of credit by Federal Reserve Banks, to make certain technical adjustments including to reflect the expiration of the Term Asset Backed Securities Loan Facility (TALF) program.
The proposed amendments would revise the provisions regarding the establishment of the primary credit rate at the discount window in a financial emergency, and would delete obsolete provisions relating to the use of credit ratings for collateral for extensions of credit under the former TALF program.
Comments on the proposal are requested within 30 days of publication in the Federal Register, which is expected shortly.
Board Chair Lewis Announces Appointment of Thomas I. Barkin as Next President Richmond, Va.
https://www.richmondfed.org/press_room/press_releases/2017/president_barkin_20171204The Federal Reserve Bank of Richmond announced that Thomas (Tom) I. Barkin will become the organization's eighth president and chief executive officer on January 1, 2018.
"We are fortunate to have found an extremely well-qualified individual to serve the Federal Reserve's Fifth District and the American people," said Margaret Lewis, chair of the Richmond Fed's search committee and the Bank's board of directors. Lewis is the former president of HCA's Capital Division.
Barkin was appointed by the Bank's eligible directors, an action approved by the Federal Reserve's Board of Governors. During the nationwide search process, more than 700 candidates and candidate sources were identified, resulting in a broad and diverse candidate pool.
Currently, Barkin is a senior partner and the chief risk officer at McKinsey & Company, a worldwide management consulting firm, and previously served as the organization's chief financial officer. Barkin has overseen McKinsey's offices in the southern United States, led multiple functional areas and provided strategic counsel to a diverse portfolio of clients. "He has unique insights on many industries that drive our nation's economy and employ millions of Americans—as well as a well-informed perspective on issues facing the Federal Reserve and our nation," noted Lewis.
Barkin also served on the board of directors for the Federal Reserve Bank of Atlanta from 2009 to 2014, chairing the Bank's board from 2013 to 2014.
"In addition to his strategic leadership at McKinsey and his service to the Atlanta Fed, Tom has a legacy of promoting diversity and inclusion. He has a demonstrated ability to attract, develop and retain a diverse workforce, as well as achieve a diverse and inclusive workplace," said Lewis.
"Tom's exceptional academic credentials, his analytical and research-based thought leadership, combined with his understanding of the Federal Reserve System, were important considerations for this key leadership role," commented Lewis. "He also has experience in leading the information technology efforts at McKinsey—critical given the Richmond Fed's responsibilities for the System's national technology efforts."
"I am honored to lead the Richmond Fed and its dedicated team," said Barkin. "I deeply support the central bank's public service mission, and I'm looking forward to leading and contributing to the important work that lies ahead. I also plan to be heavily engaged across the Fifth District to learn more about the challenges and opportunities facing our communities and bringing these perspectives forward as part of my monetary policy considerations and contributions."
Barkin, 56, earned his undergraduate, MBA and law degrees from Harvard University. He currently serves on the executive committee of the Metro Atlanta Chamber of Commerce, as well as the Emory University Board of Trustees. He is married with two children.
Barkin succeeds Jeffrey M. Lacker, who retired earlier in 2017.
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National Tax Security Awareness Week No. 5: Small Businesses: Be Alert to Identity Theft
IRS press release issued 12/ 1/ 17https://www.irs.gov/newsroom/national-tax-security-awareness-week-no-5-small-businesses-be-alert-to-identity-theft
WASHINGTON — The IRS, state tax agencies and the nation’s tax industry joined together to warn small businesses to be on-guard against a growing wave of identity theft against employers.
Small business identity theft is a big business for identity thieves. Just like individuals, businesses may have their identities stolen and their sensitive information used to open credit card accounts or used to file fraudulent tax refunds for bogus refunds.
The Internal Revenue Service, state tax agencies and the private-sector tax community -- partners in the Security Summit -- are marking “National Tax Security Awareness Week” with a series of reminders to taxpayers and tax professionals. The week concludes with warnings about small business identity theft.
In the past year, the Internal Revenue Service has noted a sharp increase in the number of fraudulent Forms 1120, 1120S and 1041 as well as Schedule K-1. The fraudulent filings apply to partnerships as well as estate and trust forms.
Identity thieves are displaying a sophisticated knowledge of the tax code and industry filing practices as they attempt to obtain valuable data to help file fraudulent returns. Security Summit partners have expanded efforts to better protect business filers and to better identify suspected identity theft returns.
Identity thieves have long made use of stolen Employer Identification Numbers (EINs) to create fake Forms W-2 that they would file with fraudulent individual tax returns. Fraudsters also used EINs to open new lines of credit or obtain credit cards. Now, they are using company names and EINs to file fraudulent returns.
As with fraudulent individual returns, there are certain signs that may indicate identity theft. Business, partnerships and estate and trust filers should be alert to potential identity theft and contact the IRS if they experience any of these issues:
Extension to file requests are rejected because a return with the Employer Identification Number or Social Security number is already on file;
An e-filed return is rejected because of a duplicate EIN/SSN is already on file with the IRS;
An unexpected receipt of a tax transcript or IRS notice that doesn’t correspond to anything submitted by the filer.
Failure to receive expected and routine correspondence from the IRS because the thief has changed the address.
New Procedures to Protect Business in 2018
The IRS, state tax agency and software providers also share certain data points from returns, including business returns, that help identify a suspicious filing. The IRS and states also are asking that business and tax practitioners provide additional information that will help verify the legitimacy of the tax return.
For 2018, these “know your customer” procedures are being put in place that include the following questions:
The name and SSN of the company executive authorized to sign the corporate tax return. Is this person authorized to sign the return?
Payment history – Were estimated tax payments made? If yes, when were they made, how were they made, and how much was paid?
Parent company information – Is there a parent company? If yes, who?
Additional information based on deductions claimed
Filing history – Has the business filed Form(s) 940, 941 or other business-related tax forms?
Sole proprietorships that file Schedule C and partnerships filing Schedule K-1 with Form 1040 also will be asked to provide additional information items, such as a driver’s license number. Providing this information will help the IRS and states identify suspicious business-related returns.
For small businesses looking for a place to start on security, the National Institute of Standards and Technology (NIST) produced Small Business Information Security: The Fundamentals. NIST is the branch of the U.S. Commerce Department that sets information security frameworks followed by federal agencies.
The United States Computer Emergency Readiness Team (US-CERT) has Resources for Small and Midsize Businesses. Many secretaries of state also provide resources on business-related identity theft as well.
The IRS, state tax agencies and the tax industry are working together to fight against tax-related identity theft and to protect business and individual taxpayers. Everyone can help. Take steps recommended by cyber experts and visit the Identity Protection: Prevention, Detection and Victim Assistance for information about business-related identity theft.
Statement by U.S. Treasury Secretary Steven T. Mnuchin Regarding the Senate Passing the Tax Cuts & Jobs Act
Washington – U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today in response to the United States Senate’s passage of the Tax Cuts & Jobs Act:“I congratulate the Senate for passing this historic bill to cut taxes for families, make the tax code simpler and fairer for everyone, and make American businesses more competitive. I look forward to working with the House and Senate to send legislation to the President’s desk this month. The Tax Cuts & Jobs Act will bring better-paying jobs and opportunities to hardworking Americans, provide families with much-needed tax cuts, and lead to higher economic growth that will make our country stronger and more prosperous.”----press release issued 12/ 2/ 17
https://www.treasury.gov/press-center/press-releases/Pages/sm0228.aspx
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FTC Seeks Order to Stop Copycat Scam Pitching Bogus Credit Card Interest-Rate Reduction Services
Press release issued 12/ 4/ 17https://www.ftc.gov/news-events/press-releases/2017/12/ftc-seeks-order-stop-copycat-scam-pitching-bogus-credit-card
The Federal Trade Commission has filed a complaint in federal district court in Orlando to halt an alleged credit card interest-rate reduction scam that, the FTC alleges, deceived numerous consumers struggling with credit card debt.
The Commission alleges that the individuals charged in this case, who previously worked for a nearly identical telemarketing operation shut down by court order in 2016 at the request of the FTC, set up a new operation selling similar bogus credit-card interest-rate-reduction services within weeks of the court order shuttering the earlier operation.
According to the FTC’s complaint, Higher Goals Marketing LLC, Sunshine Freedom Services LLC, Brandun L. Anderson, Lea A. Brownell, Melissa M. Deese, Gerald D. Starr, Jr., and Travis L. Teel, have engaged in a telemarketing scheme that has deceived financially distressed consumers nationwide by pitching bogus credit-card interest-rate-reduction services.
These telemarketers allegedly received substantial help in developing and carrying out the scheme from defendant Wayne T. Norris, who previously worked for the defendants in two other FTC cases involving the telemarketing of deceptive debt-relief services, 2016’s FTC v. Life Management Services of Orange County, LLC and 2012’s FTC v. Ambrosia Web Design, LLC.
In fact, the complaint alleges that Norris began working with Anderson to set up the Higher Goals Marketing scheme weeks after the court entered a temporary restraining order (TRO) in the Life Management Services case. In this case, Norris is charged with violating the Telemarketing Sales Rule by helping the other defendants organize the telemarketing infrastructure they used to bombard consumers with illegal robocalls, putting a team of managers together to oversee the entire robocall operation, and helping to set up a shell company to collect illegal up-front fees from consumers.
The complaint alleges that the other defendants used illegal robocalls to contact consumers and pitch their fake debt-relief services. They guaranteed that consumers would substantially and permanently lower their credit card interest rates, and would save thousands of dollars in interest payments. In reality, the complaint alleges, the scheme was rarely, if ever, able to obtain the promised results. In some instances, the defendants would obtain new credit cards for consumers with low introductory teaser rates – but the promotional rates on these cards were only temporary and the defendants failed to disclose that consumers would need to pay a fee to transfer their existing credit-card balances to the new cards.
The defendants (other than Norris) allegedly violated both the FTC Act and the Telemarketing Sales Rule by misrepresenting that they could reduce credit card interest rates and save consumers money, as well as by failing to disclose that consumers could wind up paying a range of additional bank fees totaling one to three percent of their entire credit card debt. They are charged with additional TSR violations for collecting illegal up-front fees, calling consumers whose numbers are on the National Do Not Call Registry, making illegal robocalls, and failing to pay required fees to access the Do Not Call Registry.
The FTC is seeking a TRO to stop the defendants’ allegedly illegal conduct. In seeking the TRO, the Commission is asking the court to stop the defendants’ alleged violations of the FTC Act and TSR pending resolution of the case. The Commission also is seeking the appointment of a receiver to take control of the corporate defendants, an asset freeze to preserve funds for potential consumer redress, as well as limited, expedited discovery.
The Commission vote authorizing the staff to file the complaint seeking a temporary restraining order was 2-0. It was filed in the U.S. District Court for the Middle District of Florida, Orlando Division. A complete list of the defendants in this case can be found in the Commission’s complaint. The FTC appreciates the help of Florida’s Office of the Attorney General, Department of Legal Affairs, Consumer Protection Division.
Daily Bible Verse: Then Jesus spoke to them again, saying, “I am the light of the world. He who follows Me shall not walk in darkness, but have the light of life.”
John 8:12 NKJV
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