we are joined by david kautter of american university. kim in santa cruz, california on our line for independents. good morning. you with us? caller: yes! yeah. i think they need to close their tax loopholes. anyindustry does not pay tax in california, i don't think that is right. hi -- host: kim, we heard your comment and are going to let david kautter jump in. do you have any thoughts on the oil industry? in totale oil industry pays a lot of taxes. and it pays federal taxes. in many states, it pays estate tax. there are a lot of people who think whatever it pays it is not enough, it should be a multiple of what it pays. and there are others who think whatever it pays is way too much. again, just like the corporate income tax we talked about, it is an issue where people have differing views. i will say that as an industry, oil and gas pays a fair amount of tax. host: jim on twitter. "can you explain why allowing immediate right off generates more revenue?" the immediate impact, if you look at the way the government keeps its books. if yo

our guest is david kautter of american university.hat are some of the tax breaks we are going to be talking about today? guest: there are about 60 decembers that expired 31 last year, there are four big ones that affect businesses. the research and development tax allows small businesses to immediately write off certain amounts of investment in capital put in. affectr provisions that controlled foreign corporations. exceptionfinancing and a look through provision. we can go into more detail if you would like. host: i want to start with a look through provision. guest: it involves a section of that requires u.s. shareholders of foreign corporations, called controlled foreign corporations. is it to a foreign corporation where a u.s. shareholder owns 10% or more, to pick up any income. certain types of interest dividends, royalties, abnd rent, whether or not those are paid to the u.s. shareholders. a u.s. operation that owns 10% or more of a foreign company. that foreign company has interest dividends, royalties, maybe even insurance inc

host: if you want to learn more about the kogod tax center -- kautter is the managing director there at american university, thank you for joining us. that is it for today on no quote the washington journal." we will see you back here tomorrow morning at 7:00 a.m. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2014] >> news from ukraine this morning -- forces loyal to ukraine's interim government battled pro-russian militiamen today in the eastern ukrainian city of soviansk and four troops were killed and 30 wounded. broke out asghting the ukrainian government moved to regain control in the eastern part of the country. couple of ukraine -- related events to tell you about -- our coverage today includes the center for strategic and international studies hosting a discussion on the ongoing tensions including the role of nato in the conflict. that is coming up at 1:30 p.m. eastern here on c-span at 3 p.m., state department, treasury, and defense department officials will testify for the senate foreign relations committee on the russian intervention i