, Author at The S Corporation Association

BIG Reform Included in Finance Committee Mark!

Big news for S corporations! S-CORP champions Senator Blanche Lincoln (D-AR) and Orrin Hatch (R-UT) have succeeded in securing BIG reform in Senator Baucus’ (D-MT) version of a stimulus package! As S-CORP readers know, BIG reform has been a top priority for S-CORP. BIG reform could potentially free up billions in locked-up capital that could be used to buy new equipment, build more plants and hire new workers - exactly what the economy needs …

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admin2019-02-06T17:22:35+00:00January 27, 2009|

Stimulus Introduced in House

The House Leadership released an outline of its proposed stimulus package yesterday with few surprises. The total package is $825 billion with $550 billion in new spending and $275 billion in tax relief. On the spending side, the package includes $550 billion in spending, and $275 billion for tax cuts. Some of the tax highlights include:

Making Work Pay Credit – offsets payroll taxes on the first $8,100 of earnings
Expanded Earned Income Tax Credit
Bonus depreciation
A five year carry-back of net operating losses (excluding companies receiving TARP benefits, Fannie Mae, Freddie Mac)
Extension of increased small business expensing
Tax-exempt bond provisions to help state …

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admin2019-02-06T17:22:35+00:00January 16, 2009|

Estate Tax Compromise Under Development

Looks like Congressional Democrats and President-elect Obama’s economic team are already beginning work on legislation to prevent a full repeal of the estate tax in 2010. The Wall Street Journal reports that President Obama’s plan will come out in February as part of his FY 2010 budget proposal and could be acted on by the House and Senate soon after. As the Journal reports:

The estate tax would be locked in permanently at the rate and exemption levels that took effect this year. That would exempt estates of $3.5 million — $7 …

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admin2019-02-06T17:22:36+00:00January 14, 2009|

Stimulus Package Discussed

Following a closed-door planning session today of members of the Senate Finance Committee, we expect the Committee will mark-up the tax portions of a stimulus package as early as January 22^nd. As we indicated previously, committee members are committed to exerting their jurisdiction over the tax portions of the package. Moreover, there appears to be a growing debate over certain provisions in the Obama plans. As Dow Jones reports this afternoon:

“When asked about specific tax cut proposals made by Obama, Kerry said, “I think there are cuts …

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admin2019-02-06T17:22:36+00:00January 8, 2009|

Tax Relief Grows in Proposed Stimulus

Congress is back and ready to legislate. First out of the box will be the long-anticipated economic stimulus package. Unlike previous efforts, the current push has the benefit of support from leadership in the House, Senate, and the new Administration, so we expect a sizable package to reach the President’s desk prior to the February recess.

What exactly will the package include? Details are being negotiated right now but the broad outline remains the same — a large package of spending on infrastructure, relief to cash-strapped states in the form of increased federal Medicaid payments, and tax relief to businesses and …

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admin2019-02-06T17:22:36+00:00January 5, 2009|