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While the $700 billion bailout has been the focus of attention and scrutiny, the Internal Revenue Service and lawmakers have been quietly making changes to the tax code and how it is followed in an effort to further boost the financial strength of ailing companies. At the same time, though, the changes drain billions of dollars of badly needed tax revenue when the federal deficit is mushrooming. Many of the changes may lower corporate-tax revenue for years to come...

Author: /time Magazine | Title: New Tax Rules: The Hidden Corporate Bailout | 12/10/2008 | See Source »

...spent the past few months trying to make the rules as liberal as possible," says Robert Willens, an accounting and tax expert in New York. "They have been decreasing corporate taxes pretty consistently." (See pictures of the recession...

Author: /time Magazine | Title: New Tax Rules: The Hidden Corporate Bailout | 12/10/2008 | See Source »

...this year has issued 113 notices, many of which will lower the taxes companies will pay this year and in the future. That breaks the previous record of 111 in 2006, and is nearly double the 65 issued in the last year of Bill Clinton's presidency. Lawmakers, too, have passed tax changes and are pushing for more, which will save corporations billions of dollars this year. One of the biggest windfalls could come from a proposed change in the so-called carryback rule, which would fatten the tax rebate companies get when they have losses. The extension would...

Author: /time Magazine | Title: New Tax Rules: The Hidden Corporate Bailout | 12/10/2008 | See Source »

There are few posts more powerful than chairman of the House Ways and Means Committee, which not only writes tax law but also oversees trade policy and is responsible for the nearly half of the federal budget that goes toward Social Security, Medicare and means-tested entitlements. Complicating the matter for House Democratic leaders is the lack of an obvious successor for Rangel at this time of economic turmoil. The next in line for the post by seniority is California Congressman Pete Stark, one of the most liberal and hotheaded members of Congress. He has been known to challenge other...

Author: /time Magazine | Title: Rangel's Troubles Create a Problem for the Democrats | 12/9/2008 | See Source »

...Merkel snub dominated the concluding press conference, Sarkozy reacting angrily to a question from a British journalist about a schism with Merkel. Countries had at their disposal a tool kit of fiscal stimulus options, said Sarkozy, manically shredding a piece of paper as he spoke. "Gordon Brown used the tax tool. The fact that I didn't use the tool doesn't mean we disagree...

Author: /time Magazine | Title: Behind a Merkel Snub, Euro Economic Discord | 12/9/2008 | See Source »

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