tax increase - The S Corporation Association

Congress Passes Bailout — Goes Home for Elections

The House reversed course today and voted to adopt the expanded Treasury bailout package by a vote of 263-171.

As S-Corp readers know, the Senate took the original Treasury plan, added the tax extender package, some hurricane relief, and a temporary boost in FDIC insurance levels, and passed the broader legislation 74-25 on Wednesday.

Fifty-seven members of the House switched from No to Yea today. The package is now law. The President signed it as soon as the bill traveled sixteen blocks up Pennsylvania Avenue.

So how will this impact S …

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admin2019-02-06T17:22:36+00:00October 3, 2008|

Happy 50th, S Corps!

Today marks the 50^th birthday of the S corporation! As you can imagine, here at the S Corporation Association we’ve got the cake and candles ready.

Perhaps more importantly, at a time of economic and political uncertainty, the story of the S corporation and its role in making the American economy more diverse and flexible is worth reviewing.

The S corporation was born at a time when the economy was slowing, Americans were losing their jobs, and an unpopular Republican President was being accused of practicing “trickle-down economics” by a Democratic Congress.

President Eisenhower embraced the S corporation — originally an idea proposed …

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admin2019-02-06T18:06:07+00:00September 2, 2008|

House Passes Marginal Tax Increase

Foreshadowing things to come, the House on Thursday adopted legislation to increase Veterans education benfits by raising marginal tax rates on individuals – including S corporation shareholders – making $500,000 a year or more. As Congress Daily reported:

“The House, as one portion of a three-part war funding supplemental spending package, approved a provision that would pay for a four-year college degree at any public university for veterans of the wars in Iraq and Afghanistan for at least three years. To pay for the increase — $52 billion over 10 years — the House Thursday voted to impose a 0.47 percent …

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admin2019-02-06T18:06:08+00:00May 16, 2008|

Senator Clinton’s Tax Policies – Bad for S Corporations

Recently, we reviewed Senator Obama’s tax policies and how they might impact S corporations should he become President. What about Senator Clinton? If she becomes President, how would her tax policies impact small and closely-held businesses?

In general, Senator Clinton has opposed the rate relief and other tax reductions enacted over the past eight years. As she told one audience:

I want to restore the tax rates we had in the ’90s. That means raising taxes on corporations and wealthy individuals. I want to keep the middle-class tax cuts, and I want to start making changes that will save us money, save …

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admin2019-02-06T18:43:57+00:00March 31, 2008|

Budget Debate and Taxes

Everyone in Washington knows Congress will have to address the growth of the Alternative Minimum Tax (AMT) and the expiration of popular tax provisions over the next three years. Just how they will go about it, however, is very much up in the air.

Both the House and the Senate are considering their respective budgets this week. Lots goes into a federal budget, as you can imagine, but nothing is more important for S corporations than how this budget will address the AMT and expiring tax provisions.

On this question, the House and Senate are moving in opposite directions. The House wants …

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admin2019-02-06T18:43:57+00:00March 11, 2008|