News conference here on cnbc. That starts at 2 00 p. M. With the announcement. 2 30 with the comments and questions theyll be taking from reporters. Ahead of the announcement here is how everything is shaping up this morning with futures. You saw what happened yesterday with the markets. Declines across the board for the major averages. You can see this morning things are barely budging one direction or the other. You can see positive arrows but these are gains of ten points above value for the dow futures. Less than 1 point for the s p and about 4. 5 points for the nasdaq. A lot of people are buzzing this morning about a wellknown Hedge Fund Manager on wall street weighing in on what the fed should do. Its on the front page of the Financial Times this morning. An anticipated Interest Rate hike later this year could, he says, take a bite out of the economic recovery in a letter to investors he is arguing now that the move could knock over the apple cart. He says this is history repeati
Tax rate of those companies to be reduced. And thats why were talking about this subject. So it appears that having a bow tie is not an indication of prof sor yal stature but tax planning. John, you started us off by talking about the fact that your view, this set of practices were a symptom of a larger set of drivers in the Corporate Tax structure and that ultimately and i think you wouldnt get any disagreement with anyone here we need to be addressing those larger drivers. But in the context of the current debate, first of all, can i ask you to ask would the measures that steve and steve have put on the table be effective and then we can go beyond that to say should treasury take it. Lets start with the effective. So the answer is i dont think so. But theres an overarching point before i get back into the weeds which is why are we trying to raise the bar so it will be harder for companies to leave the United States. Why arent we trying to do something to make it more attractive for t
Battlefield. And then ralph nader and Grover Nordquist discuss asks the state of bipartisanship in government. Treasury secretary jack lew spoke about actions his department could take to bolster Corporate Tax accountability and make the u. S. A more attractive place to invest. He weighs speaking at the Tax Policy Center in washington, d. C. His remarks are followed by tax law experts discussing the issue of corporate inversions, which is when a company tries to ease its tax burden by rye incorporating its affairs from one country to another. This is just under two hours. Theres some standing room in the front there on the left, if there are people feeling a hill crowded back there. You can come on over here. Yes. Okay. Good morning, everyone. I am sarah rosen moretell. And i have the opportunity for welcoming everyone here, including those of you standing in the back to, for joining us, a special welcome, of course, to our guest of honor, secretary jack lew. Its an enormous honor for
Or in a number of different other circumstances guaranteed debts and the like. Those trigger a current inclusion of these deferred income thats been allowed to accrue tax free just like your i. R. A. Has been allowed to accrue tax free. And in code section 956, congress authorized treasury to write regulations to prevent the avoidance of the provisions of the section through reorganizations or otherwise. So, again, treasury has been given authority under this code section to tackle the kinds of problems, economic challenges that the inversion phenomena exists. As i mentioned, there are over 500 specific grants of authority. Im only highlighting two here. I could speak to many more, but ill let the discussion continue. Thanks. So im going to return back to steve again. Steve, i want to ask if theres any other tools you want to add to that list, and then well spend a few minutes talking about first the impact of using those tools and then secondly how we think that would the wisdom of do
I just wanted to mention that one of the tools an Agency Always has is enforcement of the law as it is. And my article was directed at going expanding regulations to address issues that might not be able to reached under current law. But i didnt discuss in that article an antiabuse regulation under section 956 that as i read it, on its terms and because of some peculiar aspects that are quite expansive could actually be used to treat what is called a hopscotch loan from a controlled foreign subsidiary. If we had the picture back up i dont know if thats possible up to the new foreign parent as in many cases, not every case, but in many cases as a deemed dividend to the u. S. Company. So, the real need for regulations, in my view, is cases where that regulation with respect to using the offshore earnings would be cases like that regulation would not reach or that the i. R. S. Which has great discretion under that regulation chooses not to apply it, and in particular cases where theres po