, Author at The S Corporation Association

Congressional Overview

We are nearing the finish line for the 110^th Congress with more on the table than when we started nearly two years ago.

None of the 12 bills to fund the government have been adopted. Tax provisions that expired at the end of 2007 remain to be extended. And the collapse of the subprime mortgage market that began a year ago with the failure of several hedge funds has grown into a full fledged credit crisis that, according to the Administration, threatens to harm the entire economy.

It appears Congress will stay in through next week and will have to address the …

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admin2019-02-06T18:06:06+00:00September 26, 2008|

Extenders Advance

Following a series of votes on alternatives, the Senate adopted a $150 billion package of tax extenders yesterday by a vote of 92-5. The key components of the package include:

A one year extension of the higher exemption amount under the Alternative Minimum Tax. This provision will prevent about 20 million taxpayers from getting sucked into the AMT when they file their taxes this April.
An extension of expired and expiring personal and business tax provisions, including the state sales tax deduction and R&E tax …

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admin2019-02-06T18:06:06+00:00September 24, 2008|

Bailout Takes Center Stage

Our friends at the Treasury spent the weekend working primarily with the House Financial Services Committee to refine the Administration’s emergency plan to purchase hundreds of billions of dollars worth of mortgage backed securities.

According to Bloomberg, the scope of the proposal has expanded to include other troubled assets, including credit card debts and car loans. Members of Congress are also weighing in, seeking to add additional provisions such as limits on executive compensation and the cramdown of loan balances under bankruptcy.

The goal of these talks is to get …

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admin2019-02-06T18:06:07+00:00September 22, 2008|

Tax Policy and Small Business

Earlier this week, the Wall Street Journal reviewed the most recent comments by Senator Barack Obama regarding his plans for tax policy.

As we noted in the past, the bias is for higher tax rates beginning sometime in the next Congress. This bias stems from the make-up of Congress and the scheduled expiration of the 2001 and 2003 tax cuts and exists regardless of who becomes President.

That said, the S corporation community should pay particular attention to some of the proposals put forward by the Obama campaign - specifically, his plan to raise marginal tax rates …

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admin2019-02-06T18:06:07+00:00September 12, 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|