ICYMI
Senator Grassley is credited with preserving an anti-corporate tax shelter provision that he worked to make part of current law. The economic substance doctrine says transactions generating a tax benefit have to have a legitimate business purpose besides a reduction in tax liability. Senator Grassley weighed in to keep the provision amid concerns that it might be repealed through the health care law repeal-and-replace effort. So far, Senator Grassley is succeeding; repeal of this tax provision is not in the House of Representatives’ Obamacare repeal and replace bill. “Repealing the economic substance doctrine could signal a green light to corporations to once again engage in abusive tax shelters that had been shut down with its enactment,” Senator Grassley said.
Read Politico’s story, “House Obamacare plan keeps provisions targeting tax shelters,” here.
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