House Ways and Means Committee Chair Dave Camp (R-MI) questions U.S. Secretary of the Treasury Timothy Geithner in Washington February 15, 2012.

WASHINGTON | Fri Feb 15, 2013 6:43pm EST

WASHINGTON (Reuters) - A top Republican lawmaker has challenged the widely respected congressional forecaster on budget issues, the Congressional Budget Office, accusing it of a slanted report on taxing corporate profits, according to documents released on Friday.

A 36-page January CBO report concluded that tens of billions of dollars in new government revenue could be raised over a decade by limiting corporations' ability to defer taxes on foreign profits, a tax change favored by President Barack Obama.

The change, which would raise companies' tax bills, would boost efficiency and raise about $114 billion over 10 years, CBO estimated.

The prediction didn't sit well with Dave Camp, the Republican chairman for the U.S. House of Representatives' tax-writing Ways and Means Committee, who backs moving to a territorial tax system and is working on legislation to overhaul the entire U.S. tax code.

Under the territorial approach companies could bring foreign profits home with little or no corporate income tax imposed on a permanent basis, not just during a temporary, one-year holiday.

In an unusual move, Camp wrote to non-partisan CBO requesting an explanation of the report's methods, calling it "heavily slanted and biased in favor of one particular approach," according to a copy of the letter dated January 24 and released by Camp's office on Friday.

The Michigan lawmaker released his original letter after the CBO released an official response on Friday.

CBO director Douglas Elmendorf said he believes the report presents "key issues fairly and objectively and that its findings are well grounded in economic theory and are consistent with empirical studies in this area."

Still, the CBO director said that "because of the complexity of the subject and the diverse views of experts in the field, we agree that it would have been desirable to seek comments from more outside reviewers."

One of the experts cited by CBO was a former Obama administration official. Another academic has written critically of corporations skirting taxes abroad.

CBO said new revenues generated by the White House's approach would exceed new revenues available under the territorial system, favored by many corporations.

The territorial system, as promoted by corporate lobbyists and Republicans in Congress, would raise $76 billion over a decade, under one estimate cited by the CBO.

(Reporting by Kim Dixon; Editing by Todd Eastham)

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1 of 5. A man clicks his nails as he looks at an electronic board displaying share prices outside a brokerage in Tokyo September 20, 2012.

TOKYO | Sun Oct 14, 2012 10:54pm EDT

TOKYO (Reuters) - Asian shares fell on Monday on growth concerns ahead of the third-quarter corporate earnings season, lifting the safe-haven dollar which in turn undermined commodities.

As risk sensitive assets retreated, the dollar index .DXY measured against a basket of six major currencies gained 0.4 percent.

A stronger dollar and worries that a slowing global economy may further dent fuel demand pushed U.S. crude futures down more than $1 to $90.82 a barrel. Brent fell 0.6 percent to $113.99.

The MSCI index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3 percent.

Tokyo's Nikkei average .N225 was down 0.1 percent. .T

U.S. stocks wrapped up their worst week in four months, led lower on Friday by financial shares. More financial institutions will report earnings in coming days, including Citigroup (C.N), Goldman Sachs (GS.N) and Bank of America (BAC.N), amid concerns about their shrinking profit margins.

"People are just cautious, quite reluctant. It is not only equities, it is property and a whole range of asset classes, people are happy to have the money in the bank rather than put it to work," said Burrell & Co director Richard Herring.

"We will probably need a good earnings reporting season out of the U.S. or a change in the environment here - a more certain outlook," Herring said.

A decline in Chinese consumer and producer prices in September left scope for policy easing to underpin growth.

Data over the weekend from China, the world's second-largest economy after the United States, offered some positive news, suggesting government moves to underpin growth are working and additional policy action may not be needed.

China's broad M2 money supply rose more than expected in September while its exports grew at roughly twice the rate expected in September and imports recovered.

"The better than expected upswing in Chinese exports follows similar outcomes for Taiwan and Korea and may be consistent with a bottoming in global manufacturing PMIs in suggesting a possible stabilization or improvement in global growth," said Shane Oliver, head of investment strategy at AMP Capital.

Commodity currencies failed to cling to an early lift, with the Australian dollar falling 0.6 percent to $1.0204, close to the near three-month low of $1.0149 plumbed a week ago.

US POSES RISK

The encouraging Chinese data could not completely dispel concerns about the global slowdown, with the euro zone's prolonged debt crisis dragging on.

Investors should brace for three or four months of jittery markets due to uncertainty over support for Spain and the looming "fiscal cliff" threatening the U.S. economy, BlackRock Chief Executive Laurence Fink told Reuters on Saturday. Fink warned that the U.S. stock market could lose 5 to 10 percent in a correction in the final months of the year.

"Markets have yet to fully reflect concerns about the 'fiscal cliff' but the issue represents a major downside risk," Takao Hattori, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo said .

Orders related to the U.S. military industry may feel the pinch as automatic across-the-board budget cuts set to begin on January 2 if there is no deal on deficit reductions, Hattori added.

The era of rising Western spending on weapons and wars is over, providing a more challenging environment for major arms manufacturers.

Hattori also said markets have been supported by expectations and hopes, rather than conviction, over how Europe will resolve its debt crisis.

The euro slipped 0.4 percent to $1.2897 as Europe muddles through debt relief measures for Spain and Greece.

Investors expect highly-indebted Spain to request assistance, triggering the European Central Bank's program to buy bonds of struggling euro zone states that ask for aid.

They also hope Europe will not allow Greece to leave the currency union.

Greek Prime Minister Antonis Samaras has said his government expects to agree a new austerity package with its lenders and for the European Union and the International Monetary Fund to bridge their differences on how to cut the country's debt by the time EU leaders meet on October 18-19.

Euro zone officials are considering new ways to reduce Greece's huge debts because delays to reforms by Athens and continued recession have put the target of a debt to GDP ratio of 120 percent in 2020 out of reach, euro zone officials said.

Euro zone officials also said Spain could ask for financial aid from the euro zone in November.

Asian credit markets weakened, with the spread on the iTraxx Asia ex-Japan investment-grade index widening by 2 basis points.

(Additional reporting by Ian Chua in Sydney and Victoria Thieberger in Melbourne; Editing by Simon Cameron-Moore)

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