Washington Wire

NIIT Picking

May 11, 2022|

Tax Notes is out with a new piece that makes the case for expanding the Net Investment Income Tax (NIIT).  The article quotes exclusively from individuals who would like to see the tax applied to a broader base of income.  Absent is anybody from the business community, which is uniformly opposed to these tax hikes.

Instead, the article comes across as an advocacy piece highlighting people long opposed to the pass-through structure as a

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Talking Taxes in a Truck Episode 19: BBB Still “Too Big to Succeed”?

May 6, 2022|

On this special Detroit edition of the Talking Taxes in a Truck podcast, we’re joined by Chris Smith, President of Summit Global Strategies and Executive Director of the Main Street Employers Coalition. Chris and Brian kick off the episode by debating what effect the leaked Supreme Court draft decision will have on the tax policy outlook, and the odds of an overhauled Build Back Better Act being passed in the coming months. They also break

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More Evidence Tax Hikes Boost Prices

May 2, 2022|

Still more evidence the tax hikes included in the Build Back Better Act would make inflation worse.  As noted by Bruce Thompson in the Washington Examiner, a “Working Paper” from the National Bureau of Economic Research shows how tax hikes on businesses result in higher prices for consumers.

The study found that increases in corporate tax rates are passed on to consumers, in part, in the form of higher prices.  Here’s the key conclusion

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Small Business “Boom” is Anything But

April 29, 2022|

At a roundtable event on Thursday, President Biden unveiled a new White House report that touts a “small business boom,” and attributes this success to his administration’s economic strategy.

The timing of the event was a bit odd – the Commerce Department had just released its first quarter GDP estimates, showing the economy shrank by 1.4 percent, and businesses continue to face rampant inflation, job shortages, and supply chain disruptions. So what’s this “boom”

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Collections Undermine Tax Hike Narrative

April 25, 2022|

The progressive case for raising taxes is premised upon two arguments – 1) income shares are increasingly concentrated at the top and 2) the Tax Cuts and Jobs Act (TCJA) reduced taxes for the wealthy and corporations at the expense of everybody else.

The first premise is simply wrong, as demonstrated most recently by new research by Phillip Magness and Vincent Geloso.  This paper lands on top of a growing pile of analyses (see

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Virginia Unlocks Millions in SALT Parity Relief

April 12, 2022|

With Tax Day just around the corner, we have some good news that should help ease the pain. Yesterday, Governor Glenn Youngkin signed HB 1121 into law, making Virginia the 25th state to adopt our SALT Parity reform. As a result, more than 200,000 Virginia S corporations and partnerships will have access to about $160 million in annual tax relief, starting with their 2021 returns.

As S-CORP readers know, the new cap on state and

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Senator Kyrsten Sinema Joins Small Business Owners at Tax Summit

April 8, 2022|

S-Corp and NFIB hosted their second annual Main Street Tax Summit yesterday – a virtual event focused on tax policy issues faced by individually- and family-owned businesses.

Senator Kyrsten Sinema (D-AZ) kicked off the event with the keynote address. In her remarks, the Senator highlighted the challenging environment for Main Street businesses and made clear that she would continue to speak up on behalf of millions of

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Inflation and the BBB, Revisited

April 7, 2022|

With the DC tax press continuing to pester Senator Joe Manchin about the BBB’s prospects (response:  still dead) we thought we’d revisit yet another reason Congress should leave the BBB behind – inflation.

Inflation has exploded in the past year. As this survey from NFIB shows, the issue went from “also-ran” status to the #1 business concern almost overnight.

Meanwhile, the American people believe the BBB’s

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