budget control act - The S Corporation Association

What’s Next?

The Super Committee announced today that it will not produce any recommendations for Congress to act on next month. The markets are reacting badly, which surprises us. They should have seen this coming. Maybe they were hoping for some sort of signal that Congress can function and is prepared to deal with our ongoing fiscal crisis, but every signal we received for the past two months suggested the Committee was going to fall short.

Now that they have missed the mark, the question becomes, “What’s next?”

For the remainder of 2011, Congress needs to act on the tax provisions set to expire …

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admin2019-02-01T20:24:44+00:00November 21, 2011|

Super Committee — Running Out of Airspeed and Ideas

Just like an old pilot, the Super Committee appears to be running out of options in its race to find $1.2 trillion in savings. With one week left before the November 23rd deadline, time is short and the sides are far apart. There has been a measurable increase in activity and it’s obvious the Committee members are trying to cobble together something, but can they bridge the gap?

The lack of time for the Committee to act would suggest no.

The deadline for them to favorably vote on a proposal is November 23rd, but the real deadline is much sooner. Why? The …

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admin2019-02-01T20:24:44+00:00November 16, 2011|

Super Committee, Tax Reform, and Tax Provisions

Congress returned this week with most people focused on the Super Committee and its prospects for producing a deficit reduction plan by the end of the year.

To recap, the Budget Control Act created a Super Committee of twelve members charged with coming up with at least $1.2 trillion in deficit reduction by the end of the year. How they devise these savings is up to them, but if they fail, we will see $1.2 trillion in automatic spending cuts equally divided between defense and domestic spending starting in 2013 and spread out over nine years.

For tax wonks, the big question …

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admin2019-02-01T20:24:45+00:00September 7, 2011|