, Author at The S Corporation Association

Stimulus Deal Announced

As the news reported over the last couple of days, Administration and House leaders have agreed to a package of temporary tax relief to provide the economy with fiscal stimulus. As reported, the package would reduce revenues by about $150 billion over ten years. The major provisions are:

Rebate checks (tied to a temporary cut in the 10% tax bracket) to families – $600 for singles making less than $75,000 and $1,200 for couples earning less than $150,000.

Fifty percent bonus depreciation for business investment through the end of 2008.

An increase in small business expensing (section 179) from $125,000 to $250,000.

A temporary …

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admin2019-02-06T18:43:58+00:00January 25, 2008|

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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admin2019-02-06T18:43:58+00:00January 16, 2008|

2008 Tax Forecast

While everyone else is predicting the presidential primaries, we thought we’d take a look at the forecast for tax policy in Congress this year.

The usual refrain for a presidential election year is that all the real policy issues are pushed aside in favor of posturing for the election and the following session of Congress.

While we expect to see lots of posturing, there are two reasons why some real tax work might get done this year, namely, the deteriorating economy and the expiration of the R&E tax credit and other tax extenders.

Nearly all of the Presidential candidates have put forward a …

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admin2019-02-06T18:43:58+00:00January 16, 2008|

President Bush Plugs S Corps in Chicago

Say what you want about this President, he understands the important role S corporations play in the economy and the critical link between low tax rates, business investment, and job creation. This excerpt is from the President’s speech in Chicago on Monday, but it could have come from any of his economic speeches over the past seven years.

“I don’t think there are many folks who believe that Washington really needs more of your money — I certainly don’t. Unfortunately, Americans could be facing higher taxes unless Congress takes action to stop it. You see, …

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admin2019-02-06T18:43:58+00:00January 9, 2008|

Congressman Kind Introduces S Corp Modernization Bill

Just before Congress left for the holiday break, Congressman Ron Kind (D-WI) introduced legislation to help improve the rules under which S corporations operate. The bill, H.R. 4840, is entitled the “S Corporation Modernization Act of 2007″ and was cosponsored by a strong bipartisan set of members, including Representatives Jim Ramstad (R-MN), Stephanie Tubbs Jones (D-OH), Allyson Schwartz (D-PA), Phil English (R-PA), Sam Johnson (R-TX), and Steve Kagen (D-WI).

Congrats to the Kind office for introducing this important legislation and putting together this impressive list of cosponsors. Given that most of our S corporation challenges are tax-related, the fact that six …

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admin2019-02-06T18:43:58+00:00December 20, 2007|