white house - The S Corporation Association

Corporate-Only Tax Reform Still a Bad Idea

Today, President Obama is announcing a repackaging of the corporate tax reform proposal he put forward back in 2012. Based on the White House fact sheet, the plan is a restatement of his 2012 plan coupled with a call to raise “one-time” revenues to pay for new spending.

To recap the 2012 plan, the President proposed to:

Cut the C corporation top tax rate to 28 percent;
Reduce the top rate on C corporation manufacturers to 25 percent;
Eliminate tax deductions, preferences and credits used by C corporations and pass-through businesses alike to offset the lower C corporation rates; and
Increase expensing limits …

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admin2019-02-01T20:08:24+00:00July 30, 2013|

Anti-Tax Reform in the President’s Budget

The President’s budget is out, and for the second year in a row it seeks to redefine tax reform to fit its own purposes.

The vast majority of policymakers view tax reform as embracing two fundamental goals:

Increased simplicity for both taxpayers and the IRS; and
Lower marginal tax rates imposed on a broader base of income.

The President’s budget , however, would take us in exactly the opposite direction. Rather than simplify the tax code, it would make it more complicated, and rather than move towards lower rates and a broader base of income, it would selectively lower and/or raise rates based …

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admin2019-02-01T20:08:24+00:00April 11, 2013|

Administration Offers Corporate Tax Reform

The Administration released its outline for “business” tax reform today. Described by its authors as more than a set of principles but less than a fully-realized plan, the 22-page joint Treasury-White House release raises more questions for us than it answers.

Core to the plan is a reduction in the top corporate tax rate from 35 to 28 percent. Pass-through businesses would not benefit from the rate reduction. Manufacturing businesses would see a further reduction down to 25 percent through the use of a manufacturing deduction. Advanced manufacturing would receive a yet more generous deduction.

To offset the cost of the lower …

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admin2019-02-01T20:21:28+00:00February 22, 2012|

Battle Lines on Tax Policy

The President rolled out his latest deficit reduction outline yesterday. As expected, it included several tax recommendations. In sum, the President is calling for an additional $1.5 trillion in tax collections over the next decade, including:

Expire Bush Tax Cuts on High Income Earners ($800 billion)
Cap Itemized Deductions & Exemptions at 28 percent ($400 billion)
Various Loophole Closers ($300 billion)

There are a number of challenges with the list. First, allowing tax provisions already set to expire to, well, expire, doesn’t raise any revenue. It’s already in current law. That $800 billion in savings doesn’t exist.

Second, the President already proposed to use the …

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admin2019-02-01T20:24:45+00:00September 20, 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|