Tax Policy Update - June 16, 2014

NUMBER OF THE WEEK: $20.5 Billion

The reported amount of Medtronic Corp.'s earnings held by its overseas subsidiaries. The medical device maker announced Sunday that it would reincorporate in Ireland following its acquisition of a much smaller, Ireland-based medical device maker. The move will allow the company to access its profits held overseas without being subject to the U.S. 35 percent corporate tax rate.

LEGISLATIVE LANDSCAPE

House: More Extenders Passed. The House passed legislation to make permanent three expired tax provisions related to business expensing and tax benefits for S corporations. None of the bills contained offsets of their costs — a sticking point for the majority of Democrats in the House who voted against the provisions. H.R. 4457, America's Small Business Tax Relief Act, would permanently extend the enhanced Section 179 expensing provision. H.R. 4453 would allow for a five-year recognition period for the tax on built-in gains,