Washington Wire

Tax Gap Claims Come Up Short, Again

September 20, 2022|

We’ve been skeptical of grandiose promises to close the so-called tax gap for years (here, here, here).  Part of that skepticism stems from the blatant self-interest of those making the estimates – we could raise billions, trillions, quadrillions if only you gave us more money! (Perhaps the CRS or JCT could be in charge of making these estimates in the future?)

Last week’s piece from The Hill is a perfect example.  Under

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Disable the ENABLERS Act

September 7, 2022|

Worried about your privacy?  You should be.  Congress is back and is quietly moving legislation that threatens the privacy and security of millions of business owners, charities, foundations, and investors.

The bill is called the Establishing New Authorities for Business Laundering and Enabling Risks to Security (ENABLERS) Act, and it has already passed the House as a rider on the annual National Defense Authorization Act (NDAA).

In simple terms, the Act would dramatically expand the Corporate Transparency

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Shrinking Main Street

August 31, 2022|

ADP is out with its revised, independent jobs forecast this week and it shows continued challenges for Main Street.  As with past reports (before they revamped the product to produce a truly independent alternative to the monthly BLS reports), the latest data shows a continued divergence in the economy, with larger businesses adding jobs while smaller firms shed them.

According to ADP, private employers created 132,000 net jobs in August. But while large firms (those

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Inflation Reduction Act Targets All Taxpayers

August 25, 2022|

The Inflation Reduction Act (IRA) has kicked off a rigorous debate over the $80 billion in new funding for the IRS. Republicans argue the funds will be used to audit the middle-class while the Biden Administration assures us that nobody under $400,000 will see increased audit “rates.”

So where does the truth lie?  In short, the IRA will substantially increase the number of IRS audits over the next decade, including higher numbers of audits for middle-income

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Ditch the IRA

August 11, 2022|

The Main Street business community today sent a letter to lawmakers with a simple message: many of the proposed tax policies in the Inflation Reduction Act would harm individually and family-owned businesses and should be rejected.

The letter was signed by more than 70 trade associations representing millions of Main Street businesses from every corner of the country and every sector of the economy, including NFIB, the National Restaurant Association, the Associated Builders

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“Getting Less for More”

August 5, 2022|

CBS News is out with a great interview that highlights the growing concerns of small business owners as they grapple with rising inflation, worker shortages, supply chain disruptions, and the looming threat of an economic recession.
Here’s how Jessica Johnson-Cope, the owner of a small business that provides security and protection services, summed up the current environment:
With inflation, we’re getting less for more. We have an armored car business, so fuel costs

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Recession, Inflation, and the Small Business Sector

July 29, 2022|

Want to understand what’s happening in the economy?  Look to inflation-adjusted data.  Wage levels and company revenues are reported in nominal terms, while the GDP estimates are adjusted for inflation.  That’s why they appear to be headed in different directions when, in fact, it’s all going south.

It’s also the reason inflation is something to be avoided, and something to be addressed quickly when it does appear.  When you dump trillions of new dollars into the

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Summers on Tax Hikes

July 27, 2022|

Larry Summers has been right on inflation for the past year, but what about his recent comments on tax hikes? Here’s what he told reporters last week:

“I sure wish we could get past this basically ludicrous economic idea that tax increases are inflationary — it’s just not right,” and “The right thing to do is to raise taxes right now to take some of the demand out of the economy.”

S-Corp has argued that tax

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