debt ceiling - The S Corporation Association

Budget & Tax Policy Outlook

The agreement earlier this month between Senators Reid and McConnell reopened the government for a few months, but it failed to resolve any of the issues that precipitated the shutdown in the first place.B Thereb s still no consensus on spending levels or tax policy beyond the end of the year.B Key dates in the agreement are:

December 13^th — Target for budget conferees to agree to a uniform budget
January 15^th — Current government funding resolution (CR) expires
February 7^th — Debt limit reached again

At this point, agreeing to a budget resolution would be a big deal.B Not only could …

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admin2019-02-01T20:19:44+00:00October 31, 2013|

Tax Policy and the “Joint Committee”

Does the debt deal include tax policies? Step One of the plan includes $917 billion in spending cuts only. But Step Two calls on a special “Joint Committee” to develop an additional package of deficit reduction that could include revenue provisions. Here are the details.

Under the plan, the new Joint Committee would be made up of six members each from the House and Senate, evenly divided between Republicans and Democrats. This Joint Committee would be asked to develop a package of deficit reductions equal to $1.2 trillion or more, and to report that package out by November 23rd. It would …

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admin2019-02-01T20:24:45+00:00August 2, 2011|

The Gang Falls Short

With less than two weeks to go before the Treasury-announced August 2^nd deadline to raise the debt ceiling, members of Congress are desperate for some sort of plan that will break the current stalemate over what type of deficit reduction should accompany the ceiling increase. So are the financial markets, to judge by their reaction.

This desperation perhaps explains the energy with which members of both parties received the “Gang of Six” plan released Tuesday.

We caution our members not to get too excited. While there are several very positive aspects of the Gang’s plan, this proposal will not be ready to …

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admin2019-02-01T20:48:05+00:00July 21, 2011|

The President and Cantor on Taxes

The Hill was all atwitter last evening with rumors that some sort of deal had been reached over raising the debt ceiling and the deficit reduction package that needs to accompany that legislation.

In moments like these, the question we ask is: A deal between whom? Certainly not the President and House Republicans, which is the ”deal” that matters most at this moment. Nonetheless, the news yesterday gives us some additional insight into where negotiations stand.

The three moving parts behind the rumor were: 1) the pending meeting today between the President and Hill leadership; 2) the President’s concession that both Social …

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admin2019-02-01T20:48:05+00:00July 7, 2011|

Chairman Camp Makes the Case for S Corps and Other Pass-Through Businesses

Wednesday’s meeting between House Republicans and the President failed to move the needle on deficit reduction, but it did give the top tax writer in the House an opportunity to deliver a message on tax reform. As Chairman Dave Camp (R-MI) stated after the meeting:

“Tax reform done the right way means more economic growth and more jobs. Any path forward for tax reform must be comprehensive to address both the individual and corporate rates. More than half of all business income is earned by pass through entities - most of which are small businesses. We cannot leave them out in …

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admin2019-02-01T20:48:05+00:00June 3, 2011|