Tax Law

WASHINGTON -- The United States has suffered one of its biggest trade defeats, losing a dispute with Europe about tax policies that deals a blow to trans-Atlantic relations and could force U.S. companies to pay billions of dollars more in taxes each year. An appeals panel of the World Trade Organization, the Geneva-based body that regulates trade, has ruled that the United States must scrap a law that lets companies avoid paying taxes on some overseas sales by channeling them through offshore subsidiaries.

CHARLESTOWN, R.I. - The sign on the tan box of a building on the Indian reservation here still says Narragansett Smoke Shop, and lashed to a tree out front is a sales pitch for Salem cigarettes at $31.99 a carton. But inside, the place has been transformed into the Narragansett Sovereignty Protection Headquarters. The only items for sale are two kinds of T-shirts: one proclaiming "Sovereignty" and the other with the slogan "Homeland Security. Fighting terrorism since 1492. In support of the Narragansett Tribe, July 14, 2003."

Proposed changes in tax law now heading through Congress would lessen the advantages of renting luxury suites at sporting events at the same time that Baltimore and four other NFL-hopeful cities are trying to market more than $250 million worth of the pricey seats.But customers don't seem to mind: All of the cities that have begun collecting commitments on the seats report brisk sales.President Clinton's economic plan, already passed by the House and now before the Senate, calls for a reduction in the amount of entertainment spending that can be deducted from income taxes as a business expense.

It's going to be a lot tougher to buy a tax-free painting of Elvis in Maryland.The state comptroller is cracking down on those here-today, gone-tomorrow entrepreneurs who bring furniture, stuffed animals or velvet artworks into Maryland and sell them by the side of the road with- out going through such sticky formalities as collecting and paying sales tax.As of yesterday, merchants selling taxable items from a temporary location were required to have a...

SOMEBODY SMASHES your car windshield to steal the quarter sitting on the dashboard. He's 25 cents richer, but you're out 500 bucks. A fair transaction? Apparently, it's not a problem for authorities in Delaware. Yes, that's right, our neighbors to the east seem to have the instincts of a second-rate criminal -- at least when it comes to business dealings. Recently, Delaware created a new type of corporate tax dodge that is breathtaking in its audacity. Its sole purpose? To help large companies hide profits from states like Maryland.

Baltimore state Sen. George W. Della Jr. acknowledged Thursday that he received an undeserved tax break by wrongly applying the state's Homestead Property Tax Credit to both his Federal Hill townhouse and a home in Baltimore County. Della, a Democrat, said he has contacted state and county officials and requested that he and his wife be billed for the $1,184 in back taxes he owes from the Baltimore County property. The seven-term senator represents all of Baltimore's waterfront neighborhoods and is locked in one of the tightest contests of his political career against a young, well-funded opponent, Bill Ferguson, who first noted the inappropriate tax breaks in a recent campaign mailing.

I enjoyed the letter "A punishment that fits the crime: Sentence Schurick to register African-American voters. " Tailoring punishment to fit crimes is exactly what good judges do. Here are some additional suggestions: Sentence Democratic congressman and admitted tax cheat Charlie Rangel to perform community service work on behalf of the Tea Party Express or any other non-government entity that promotes responsible taxation initiatives and...

THE REPEAL OF the federal estate tax, included in the $1.35 trillion tax cut, will make estate planning more complicated than ever for many, experts say. Over the next 10 years, the amount of assets individuals can shelter from estate taxes rises and the top tax rate declines. The estate tax is fully repealed in 2010, but the law carries a "sunset" provision under which the tax will reappear in 2011 unless Congress takes action. Lawyers and other estate planning experts warn not to count on Congress' keeping the tax repeal.

Let Custer StandEditor: Our House of Representatives has set a dangerous precedent with its recent vote to change the name of the Custer Battlefield National Park to Little Big Horn, and, after 115 years, erect a monument to the Indians who died there.While current ''politically correct'' thinking dictates appeasing every special interest group for its piece of our heritage, revisionist history in the long run will unravel the greatness that we enjoy in this country today.The men of the 7th Cavalry who died on June 25, 1876, died fighting for the flag of the United States, and, tactics aside, they died attempting to remove an enemy, hostile to our government at that time.

SO, WHAT are you doing the next 13 hours and 27 minutes? You could do your taxes. That's how long the Internal Revenue Service estimates it will take taxpayers to prepare a 1040 return this filing season - 26 minutes longer than a year ago. Though the tax law passed last summer made 441 changes, most of them won't be a factor in filing a return until next year or later. So why the longer preparation time? Some tax professionals half-jokingly blame the extra minutes on Form 1040's Line 47, or the "rate reduction credit."