The US House on Tuesday passed a provision advocated by Rep. Peter Welch that would close the Reverse Morris Trust (RMT) tax loophole and save taxpayers $260 million. The loophole was used by Verizon to avoid federal taxes when it sold its northern New England landline operations to FairPoint Communications in 2008.By a vote of 246 to 178, the House approved the Small Business and Infrastructure Jobs Act (H.R. 4849). The legislation, which invests in local infrastructure projects and small business tax credits, is paid for in part by closing the RMT loophole. It incorporates a bill introduced by Welch and 21 other members of Congress this January (H.R. 4486), which focused on closing the RMT loophole.“This loophole is bad for taxpayers, bad for consumers and bad for workers. By closing it and investing the savings in job creation, hardworking Americans – not corporations – will benefit,” Welch said.Under the Reverse Morris Trust, a parent company can spin-off a subsidiary that merges into an unrelated company tax-free, so long as the shareholders of the parent company control more than 50 percent of the voting rights and economic value of the resulting merged company. In northern New England, Verizon reportedly avoided hundreds of millions in taxes when it spun-off its landline operations to FairPoint, leaving the latter with overwhelming debt.Currently, parent companies must pay taxes on gains from their subsidiaries if they receive cash payments, but not if they receive payments in the form of debt securities. H.R. 4849 changes the tax code so that debt securities paid to a parent company are taxed the same way as cash payments, removing the incentive to leave a subsidiary saddled with debt.In addition to closing the RMT loophole, H.R. 4849 would:· Extend the Build America Bonds program to make it cheaper for state and local governments to finance the rebuilding of schools, sewers, hospitals and transit projects.· Exclude small businesses from capital gains· Increase the tax deduction for start-up expenditures to encourage the formation of new small businesses.Source: Welch’s office. 3.24.2010.# # #
Classification society ABS has granted an Approval in Principle (AIP) to Hyundai Heavy Industries’ (HHI) deepwater floating liquefied natural gas (FLNG) hull design.The newbuilding conversion FLNG hull design for offshore application can be constructed for about 80 percent less than the cost of a conventional FLNG hull, according to HHI. It is based on LNG carrier designs combined with the requirements for FLNG production, such as structural reinforcements to take topside module load and a hull designed to allow up to 25 years operation without dry-docking.A low cost near shore FLNG hull was developed and achieved ABS AIP in 2017. HHI and ABS have now worked to deliver this harsh environment deepwater hull to meet increasing market demand.“In the current emerging gas market, a ready-to-convert offshore FLNG hull, with ABS certification, at affordable CAPEX is an important product for monetization of gas reserves around the globe,” said Hyungkwan Kim, Executive Vice President, Shipbuilding Division at HHI.The design features a barge-shaped hull, a GTT Mark III containment system with storage for about 192,000m3, and provisions to accommodate an internal turret and 45,000-ton of topside modules to deliver 2.5 MTPA of LNG.
The USC men’s basketball team took a big blow Thursday night before their game against West Alabama when senior guard J.T. Terrell was declared academically ineligible for the remainder of the semester.Terrell started the Trojans’ season opener on the road against Utah State, but came off the bench for the team’s next two games and didn’t play at all on Tuesday against Cal State Fullerton.USC head coach Andy Enfield would not release any specifics on the situation, but assured reporters after his team’s 76-62 win over Cal State Fullerton Tuesday night that Terrell was losing playing time for his performance in the classroom as opposed to any disciplinary reasons.“To play for me and be a student-athlete at USC you have to do certain things academically,” Enfield said.The Trojans have benefitted from an easy early non-conference schedule and currently hold a 3-1 record.Terrell’s absence will become a much bigger issue as the Trojans travel to the Bahamas next week to play in the Battle 4 Atlantis Tournament with the likes of basketball powerhouses Villanova and Kansas.Terrell was one of the few bright spots in the Kevin O’Neill era, and figured to be a huge contributor for Enfield’s squad this year. The Burlington, North Carolina native was the Trojans’ leading scorer last year, averaging just a shade more than 13 points per game.Even in limited action in the three appearances he has made this year, Terrell was the team’s third leading scorer with 10 points per game.Trouble has always seemed to follow Terrell. While attending Wake Forest University, he was sentenced to a yearlong probation and 60 days in jail after being arrested in Winston-Salem for allegedly driving while under the influence.The former Wake Forest standout resumed his playing career at Peninsula Junior College in Los Angeles before committing to transfer to USC at the urging of former Demon Deacon teammate and then-USC forward Ari Stewart.If he straightens out his academic situation then he would become eligible to play after the end of fall semester, in time for the Trojans’ contest against Long Beach State on Dec. 19.Freshman Julian Jacobs has been starting in his place for the last few games. The Trojans will not be forced to forfeit any of the games Terrell participated in this season, according to the Los Angeles Times.Follow us on Twitter @dailytrojan