Home/admin

About admin

This author has not yet filled in any details.
So far admin has created 169 blog entries.

Taxpayer Expectations and the Rangel Surtax

We have had a chance to digest a bit more of the Rangel bill introduced last week.

There was a lot to digest. Repealing section 199, LIFO, and IC-DISC, while extending the depreciation period for intangibles will all adversely impact our members to one degree or another. The fact that these tax increases are being used to offset a rate cut for C corporations doesn’t help matters.

Focusing on the individual side, the bill would substitute a new four-percent surtax on individuals and businesses earning more than $150,000 in order to offset the cost of repealing the individual Alternative Minimum Tax (AMT).

Whether

(Read More)

2019-02-06T18:43:59+00:00October 30, 2007|

Chairman Rangel Proposes Payroll Tax Increase on Small and Family-Owned Businesses

When Congress created the S corporation in 1958, the IRS ruled that only S corporation shareholders who are active in their business should be subject to payroll taxes, and then only on amounts received for their labor.

Fast forward fifty years. While the payroll tax has grown dramatically, the application of payroll taxes has always applied to labor income only – not capital income.

Last week, all this changed. House Ways and Means Committee Chairman Charlie Rangel [D-NY] introduced legislation that turns 50 years of tax policy on its head.

The bill, the Tax Reduction and Reform Act of 2007, would lower

(Read More)

2019-02-06T18:43:59+00:00October 29, 2007|

More Details on the Rangel Tax Bill

At a members briefing this evening, Ways and Means Chairman Charlie Rangel outlined his “Mother of All Tax Bills” to the Committee membership. In essence, he outlined three separate bills that he will introduce in one package:

– A bill to repeal the individual AMT and provide tax benefits for low income families; A bill to extend for one year a group of tax provisions scheduled to expire at the end of 2007, including the temporary AMT “patch”; and
– A bill to cut the corporate tax rate down to 30.5 percent.

As S-Corp readers know, the tax benefits from these three

(Read More)

2019-02-06T18:44:36+00:00October 24, 2007|

Tax Credit Repeal – Another Hit on S Corporations?

BNA this morning has additional information about the AMT repeal legislation planned to be introduced tomorrow by Chairman Charlie Rangel. Aside from the offsets we mentioned yesterday – rate increase, LIFO repeal, manufacturing deduction repeal – all of which would raise taxes on S corporations if enacted, another potential offset is the repeal of the R&D tax credit. As BNA reports:

“The enticement will be a lower corporate rate but the pay-fors would mean shutting down loopholes,” Neal said. This includes, Neal said, killing the popular research and development tax credit. A one-year extension

(Read More)

2019-02-06T18:44:36+00:00October 24, 2007|

Rangel to Propose Corporate Rate Cut

The Wall Street Journal reports this morning that Ways and Means Chairman Charlie Rangel will likely introduce his “Mother of All Tax Bills” this week, a proposal marrying the repeal of the individual AMT with a cut in the top corporate rate to 30 or 31 percent.

How is he going to offset the revenue loss of all this tax relief? Here’s what we’re hearing:

  • Rate Increase on Upper Income Taxpayers;
  • Eliminate the Manufacturing Deduction;
  • Change the Rules Allocating Expenses on International Income;
  • Repeal LIFO (!);
  • Raise Tax Rates on Publicly Traded Partnerships and Hedge Funds.

Chairman

(Read More)

2019-02-06T18:44:36+00:00October 23, 2007|