Budget Talks Threaten $150 Bln in Corporate Tax Breaks (CNBC)

LIFO inventory accounting and deductions benefiting fossil fuel companies among those facing the axe.

As Congress and the Obama Administration work on ways to avoid the fiscal cliff, efforts to raise new revenue could mean the end of some corporate tax provisions worth more than $150 billion over the next decade, according to a Financial Times article posted on CNBC.

Changes to tax preferences could be a two-step process, according to the article, with some new revenues as part of an upfront down payment on deficit reduction, followed by broader tax and spending reform next year.

Tax preferences that could be eliminated include deductions benefiting oil, gas and coal companies worth $28 billion and the “last in, first out” method of inventory accounting, used by manufacturers and distribution companies, that’s worth $77 billion.

 

See the full story here.

 

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