Marc Zell, RO Legal Counsel and RO Israel Chair is legal counsel for Monte Silver in his regulatory challenge to IRS regulations issued under the Transition Tax and GILTI tax provisions of the 2017 Tax Cut and Jobs Act. The IRS tried to dismiss the Transition Tax case and failed.
Last month they filed a motion to dismiss the GILTI Tax case. Yesterday we filed our opposition to the Government’s motion to dismiss.
Republicans Overseas is supporting the Silver litigation in favor of small businesses and expats. This is also covered by our proposed Executive Order transmitted recently to Chief of Staff Mark Meadows by Solomon Yue.
Marc Zell, RO Chair Israel and RO Legal Counsel, convinced the New York State Board of Election to register overseas Americans without having to submit both an electronic and hard copy of the voter registration. Due to the issues with global airmail, this was a limiting factor in voter registration.
As a result of a complaint that Marc Zell filed with the NY State Board of Elections, NY has agreed to a compromise which will enable NY voters to register and request their absentee ballots by e-mail without having to send their applications by snail mail (referred to by NY election officials as a “wet copy”) before a ballot is emailed or snail-mailed. Under the compromise, the FPCA can be filed by email and a ballot will be sent. Persons already registered in NY can simply send in their absentee ballots. Persons registering for the first time or whose registrations may have expired, will also receive their absentee ballots but will be required to send in the hard copy of the FPCA along with their ballots. The exact procedure needs to be clarified in order to protect ballot secrecy.
Congratulations to Marc for helping overseas Americans to register to vote!
Republicans Overseas has sent a letter to White House Chief of Staff Mark Meadows, urging him to ask President Trump for Executive Orders that would:
- Exempt small businesses from the GILTI and Transition Taxes;
- Create a Commission on Overseas Americans to consider remedies for the harms done to Americans abroad via onerous regulations such as FATCA;
- End citizenship-based taxation by instructing Treasury to redefine “individual” in Section 1 of the 1913 Tax Code to ‘resident of the USA
We hope that President Trump will consider extending tax and regulatory cuts to overseas Americans.
Joe Biden’s cribbed Green New Deal agenda from Bernie Sanders’ and Alexandria Ocasio-Cortez would place over 10.3 MILLION jobs on the chopping block.
And union workers would bear the brunt of Biden’s agenda.
The North America’s Building Trades Unions recently released a study that should be a warning to the Biden campaign: “oil and gas jobs are better paying and more reliable than jobs in renewable energy.”
The NABTU study notes, “The career opportunities for renewables are nowhere near what they are in gas and oil, and domestic energy workers highly value the safety, reliable duration and compensation of oil and gas construction jobs.”
You’d think Joe Biden would care about the job losses, yet he is willing to sacrifice hundreds of thousands of blue-collar jobs for Green New Deal policies.
When asked about the average worker receiving a $1,260 tax cut under President Trump, he called that “negligible.” Maybe that’s “negligible” to Joe Biden, but for the average worker that means less money in their pocket.
According to the Tax Foundation, Joe Biden’s tax plan alone would reduce wages, cut GDP growth, and destroy 585,000 jobs.
And while Joe Biden is slashing jobs and raising taxes, his record shows his trade policy would be a disaster for workers.
Biden supported the job-killing NAFTA trade agreement, while President Trump’s USMCA agreement is projected to create 76,000 auto and manufacturing jobs. And while Chinese unfair trade practices were ransacking U.S. industries under the Obama-Biden administration, Biden called a rising China a “positive development” for the U.S.
Bottom Line: While President Trump delivers results and workers know they have a champion in The White House, a Biden presidency would be bad for America’s workers.
Rapid Response Director
Republican National Committee
After announcing a multitrillion-dollar plan that would eliminate 10 MILLION jobs, Joe Biden did not have the guts to defend his plan this afternoon.
What we saw today was Biden pushing an agenda to “sacrifice” blue-collar jobs yet not wanting to answer for the job loss.
Biden’s refusal to answer reporters’ questions about his anti-fossil fuel agenda which would burden America with $4.5 TRILLION in expenses if oil, gas, and coal were removed from the power grid is shameful.
The Hill’s Joe Concha points out the double standard at play:
Bottom Line: If Joe Biden is unable to think on his feet and not use a teleprompter to answer questions about his agenda, how can he credibly seek the office of President of the United States?
Rapid Response Director
Republican National Committee
Not sure what the GILTI tax is and why Monte Silver’s successful lawsuit is such a win for overseas American business owners? Then please read on as Monte has kindly explained what GILTI is and how it impacted overseas Americans:
Yesterday, Treasury issued the final regulation related to GILTI and the 50% GILTI-related deduction. The final regulation included 3 !!! significant and permanent wins for our advocacy!
1. The IRC 250 deduction is formally available to a taxpayer doing a 962 election.
2. The 962 election is retroactive to 2018, the first year that GILTI applied (new, not in the proposed regulations)
3. A company can make a 962 election in an amended return (new, not in the proposed regulations)
This is really dense stuff, so let me explain and provide a numerical example:
GILTI is a tax that was created in the Tax Cuts & Job Act. Its goal was justifiably to prevent Apple, Google and similar corporate Goliaths from abusively shifting profits from the US to low tax countries like Cayman Islands. To accomplish this, GILTI imposed a US tax on the US parent company for the annual profits of its foreign subsidiaries. The way that GILTI was structured is that GILTI tax would be due where the subsidiary was located in countries where the local corporate tax was less than 13.125%.
Unfortunately, the law caught about 200,000 small businesses in the same net. To make matters worse, until the final regulation was issued, small businesses paid higher GILTI tax rates than the corporate Goliaths. The numerical example below should help understand the problem and the relief. Until now, only the corporate Goliaths got the 50% deduction (in red below). Before the final regs (the numerical column on the left), a small business owner did not. As a result, not only did small businesses incur huge GILTI-related compliance costs, but at the end of the day they paid a higher tax rate than the Goliaths (25% compared to 20). Insane.
Under the permanent regulation (center numerical column), the playing field has been leveled. We and the corporate Goliaths are treated the same, and as long the corporation is incorporated in a country where the corporate tax rate we pay is at least 13.125%, then we will not own any GILTI.
In addition to the core relief, the permanent regulation also applies retroactively to 2018, and we can amend our 2018 return to take advantage of this benefit, to the extent we did not.
This is a major win. Small businesses are invisible to the federal government. And the fact that we accomplished this and other forms are relief from the Transition tax and GILTI is a testament to our combined voice and focused persistence.
This relief in no way makes the GILTI lawsuit moot. The GILTI lawsuit seeks to have small businesses 100% exempt from the GILTI tax – i.e. no need to comply each year, regardless of the tax rate of the country in which the corporation is incorporated.
To see the regulation, click here: https://www.silvercolaw.com/…/final-gilti-related-regulatio…
|The White House • July 9, 2020|
President Trump just signed an executive order expanding the White House Hispanic Prosperity Initiative, which will help every member of our country’s proud Hispanic community prosper and achieve the American Dream.
The order will encourage pro-growth, pro-family, and pro-community policies such as school choice, personalized learning, family engagement, civic education, and more.
“Hispanic Americans are not only living the American Dream, but their incredible efforts are unlocking the American Dream for citizens all across our land,” President Trump says.
Hispanic-American workers and families have thrived under President Trump’s agenda. Before the Coronavirus pandemic, the Hispanic unemployment rate reached a record low of 3.9 percent, and it remained under 5 percent for 23 consecutive months.
In 2018, the poverty rate for Hispanic Americans reached its lowest level on record, and since 2016, nearly 611,000 Hispanic Americans have been lifted out of poverty.
As the Coronavirus spread from China across the globe, President Trump worked tirelessly to ensure that all Americans could get back to work as quickly as possible. As a result, Hispanic employment increased by a sum of more than 2.1 million in May and June. This Administration won’t stop until every American is back on the job.
And with today’s actions, America will continue to be a land of opportunity for our incredible Hispanic community, as well as for every other American family.
School choice is a big part of that vision. Nearly one-third of all students in U.S. public charter schools are Hispanic. President Trump is expanding educational opportunities for these students and others, both with today’s executive order as well as through restoring local control and ending federal overreach in education more broadly.
Community development is another crucial component. Under President Trump, new jobs and investments have poured into nearly 9,000 designated “Opportunity Zones,” which together are home to more than 9 million Hispanic Americans.
WATCH: “We’re a believer in choice”
Over Independence Day weekend, the mainstream media abandoned any last scrap of “objectivity” and went into overdrive to stir more division.
Rich Lowry zeroed in on what happened: “President Trump gave a speech that was very tough on the woke Left, while largely celebrating America — its Founders, its ideals and freedom, its capacity for self-renewal, its astonishing variety of geniuses, adventurers, warriors, inventors, and great musicians and athletes. Then, his speech ended, and the press piled on with one of its most its unhinged and dishonest performances of his presidency, which is saying something.”
The Wall Street Journal summed up the attacks against President Trump: “Progressives deride his defense of America’s founding principles.”
“Contrary to the media reporting, the America Mr. Trump described is one of genuine racial equality and diversity. He highlighted the central ideal of the Declaration of Independence that ‘all men are created equal.’”
So let’s review what was actually in President Trump’s speech. (Click here or the image below for video and/or transcript.)
President Trump said, “Our Founders launched not only a revolution in government, but a revolution in the pursuit of justice, equality, liberty, and prosperity. No nation has done more to advance the human condition than the United States of America and no people have done more to promote human progress than the citizens of our great nation.”
And President Trump went on to call out the left: “[T]here is a growing danger that threatens every blessing our ancestors fought so hard for, struggled, they bled to secure. Our nation is witnessing a merciless campaign to wipe out our history, defame our heroes, erase our values, and indoctrinate our children. Angry mobs are trying to tear down statues of our founders, deface our most sacred memorials, and unleash a wave of violent crime in our cities.”
As Byron York highlighted, “Trump specifically called out ‘cancel culture’ that is ‘alien to our culture and our values’ and is ‘a new far-left fascism that demands absolute allegiance.’ ‘This left-wing cultural revolution is designed to overthrow the American Revolution,’ Trump said. ‘In so doing, they would destroy the very civilization that rescued billions from poverty, disease, violence, and hunger, and that lifted humanity to new heights of achievement, discovery, and progress.’”
Make no mistake, the angry mob has taken over the Democrat Party. Potential Biden VP pick, Illinois Democrat Senator Tammy Duckworth made that clear Sunday when she said she was open to tearing down statues of George Washington.
Seriously. George Washington.
Bottom Line: While President Trump delivered a powerful call for unity at Mount Rushmore emphasizing how “the story of America unites us, inspires us, includes us all, and makes everyone free,” Joe Biden’s Democrat Party seeks to double down on making Americans ashamed of who we are.
Rapid Response Director
Republican National Committee
When Joe Biden wasn’t fumbling through his answers to softball questions, he was “forgetting” his dismal track record on dealing with Russia and Vladimir Putin.
Let’s take a trip down memory lane:
Biden was a leading cheerleader for the failed Russia “reset,” a set of policies deemed to be such a failure, they were panned by Hillary Clinton who deliberately distanced herself from them as she prepared for her failed run for president.
In the Obama-Biden admin’s “first major foreign policy address,” Biden said, “It’s time to press the reset button” with Russia.
In March 2011, “Biden hailed the successful ‘reset’ of U.S.-Russian relations and reiterated his call for broader economic cooperation between the two countries.”
During the Obama/Biden administration, when the Russians engaged in a “sweeping and systemic” interference campaign in the United States Obama/Biden failed to act and “choked” in their handling of the Russian hacking, issuing only a “largely symbolic” and “modest” response.
As Bloomberg’s Eli Lake observed, this was part of a systemic problem with the Obama/Biden administration: “Why did Putin believe he could treat America like it was Estonia? The answer is that Obama spent the first six years of his presidency turning a blind eye to Russian aggression.”
On Obama/Biden’s watch, Russia also ran roughshod with the annexation of Crimea.
Furthermore, Biden himself has no shortage of hair-brained ideas on how to work with Vladimir Putin.
Ahead of the Iraq War, Biden tried to buy off Putin with the promise to give them oil money.
As The Federalist points out, Joe Biden has no ground to stand on to discuss another set of anonymous Russia related leaks: “Iran reportedly offered the Taliban $1,000 bounties in 2010 for American soldiers’ deaths in Afghanistan. Not only was no action taken by President Obama at the time, six years later, he authorized the payment of $1.7 billion to the regime.”
Bottom Line: One of the cognitive tests Biden should be taking is to recall how President Trump has consistently confronted Russia from leveling punishing sanctions to strengthening NATO. What the American people will see after an examination of Biden’s record is that he is full of hot air.