Senate Finance - The S Corporation Association

New Finance Committee Chair

February 14, 2014

Senator Ron Wyden (D-OR) took the helm of the Finance Committee this week. What does this mean for tax policy? Here’s what the press has to say:

The Hill tells us he blames Republicans for gridlock on tax reform;
Roll Call says he’s the “most liberal [Finance Chair] ever”;
Forbes says he wants to level out rates on ordinary and investment income; and
Politico observes he has a “penchant for big ideas.”

Beyond that, a couple consistent items do stand out. First, it appears the new chairman is with us on the need for comprehensive, rather than corporate only, …

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admin2019-02-01T20:05:24+00:00February 24, 2014|

The release of Finance Committee tax reform discussion drafts on cost recovery and international tax have laid bare a reality that’s been hiding just below the surface for two years now the visions for reform embraced by the key House and Senate tax writing committees are dramatically different and move in opposite directions.

The international drafts are a good example. The Ways and Means draft would move the tax treatment of overseas income towards a territorial system, while the Baucus draft would move towards a more pure worldwide system by largely eliminating deferral. Here’s how the Tax Foundation described it:

Of …

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admin2019-02-01T20:19:33+00:00December 12, 2013|

Study Shows S Corps Pay Their Fair Share… And Then Some

Today, the National Federation of Independent Business and the S Corporation Association released a new study showing that S corporations pay the highest effective rates of any business type.

The study, authored by Quantria Strategies, LLC, compares the tax burden different business entities will shoulder in 2013 and finds that S corporations will pay the highest average effective tax rate (31.6 percent of their income), followed by partnerships (29.4 percent), C corporations (17.8 percent) and Sole Proprietorships (15.1 percent).

The results of this study come at a critical time for tax reform. Ways and Means Chairman Dave Camp and Finance Committee …

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admin2019-02-01T20:08:24+00:00August 7, 2013|

Finance Committee ”Blank Slate” Letter

Yesterday, Senate Finance Committee Chairman Max Baucus and Ranking Member Orrin Hatch ruined the July 4^th vacation plans of every tax lobbyist in town with they laid out their new “blank slate” approach to tax reform.

In a letter sent to fellow senators, the two announced that they would work under the assumption that all exclusions, deductions, and credits currently written in the tax code have been repealed, and that only the most defensible provisions would be put back in. Sens. Baucus and Hatch called on their colleagues to defend the tax breaks they see as important, and gave senators …

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admin2019-02-01T20:08:24+00:00June 28, 2013|

Taxing Business Investment

Our position on tax reform is simple and outlined in the letter 45 business groups sent to Congress last fall:

Pursue comprehensive reform that includes both the corporate and individual tax codes;
Keep the top rates on corporate and individual income low and at the same level; and
Continue to reduce the incidence of the double tax on business income.

This last principle is premised on the idea that the pass-through structure is the correct way to tax business income, as Eric Toder told the Senate Finance Committee last year:

Senator Snowe: I appreciate that. Does either one of you want to comment, Dr. …

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admin2019-02-01T20:21:28+00:00March 2, 2012|