, Author at The S Corporation Association

New Congressional Budget Doesn’t Protect Tax Relief

There are two ways to pass a tax bill in the Senate: bring it up under the regular floor rules and gain the support of 60 Senators, or bring it up under the “budget reconciliation” process and attain the support of a simple majority. The budget offered by Senate Budget Chair Judd Gregg last week assumes $227 billion in lower taxes over the next five years, but doesn’t protect that tax relief under reconciliation.

What does that mean for S-CORP members?

It means that any tax bill brought to the Senate floor that conforms to the budget resolution would still …

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admin2019-02-06T18:47:20+00:00March 14, 2006|

Congressional Efforts to Close Tax Gap Means S Corp Payroll Tax Increase Is Still A Threat

Today the Senate Budget Committee held a hearing on “the causes of and solutions for addressing the federal tax gap.” Witnesses included IRS Commissioner Mark Everson, Government Accountability Office Comptroller General David Walker, and Nina Olson, National Taxpayer Advocate. The tax gap is the difference between what taxpayers owe and what they pay (or at least, what they pay on a timely basis).

This hearing stems from the release of the President’s FY07 budget (which makes funding recommendations for the IRS and includes other proposals to improve disclosure and tax administration) and the IRS’ announcement yesterday that the 2001 tax gap …

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admin2019-02-06T18:48:17+00:00February 15, 2006|

The President’s Budget

One of the challenges of political advocacy is to separate real from imagined threats. For S Corps, the threat of increasing payroll taxes on S Corp profits continues to be very real indeed, despite the best efforts of a broad coalition of business groups to educate policy makers on why the proposals on the table are bad policy and bad economics. For example, the attached BNA story is about a relatively narrow proposal in the President’s new budget to increase collections of payroll taxes from companies that lease employees to other businesses.

At first blush, it’s not really about S Corps. …

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admin2019-02-06T18:48:17+00:00February 10, 2006|

Political Landscape of 2nd Session of the 109th Congress

The second session of the 109th Congress has begun! The Senate was in session for a portion of January to consider President Bush’s nomination of Samuel Alito to the Supreme Court with the final vote to confirm him occurring on January 31st. Both the House and the Senate returned in earnest to legislative business that day which was also the day of the President’s State of the Union address. This week the President unveils his FY 2007 budget proposal which is likely to include new initiatives for energy independence and healthcare affordability.
First and foremost on the minds of House Republicans …

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admin2019-02-06T18:48:17+00:00February 6, 2006|

S-CORP Marked Key Legislative Successes in 2005, Though Major Battles Loom in 2006

With Congress finally home for the holidays, S-CORP has begun to focus on its 2006 agenda. Before we embark on the year ahead, however, we wanted to take a moment to recap for member companies some of our 2005 milestones. The year was extremely active and largely positive for S-CORP and our members. Among the most noteworthy developments we marked were:

Blocking Proposed Payroll Tax Hikes on S Corp Shareholders

As members recall, we began the year with a very real threat to S corporations in the form of two proposals - one from the Treasury Department and another from …

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admin2019-02-06T18:48:17+00:00December 30, 2005|

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New Congressional Budget Doesn’t Protect Tax Relief

Congressional Efforts to Close Tax Gap Means S Corp Payroll Tax Increase Is Still A Threat

The President’s Budget

Political Landscape of 2nd Session of the 109th Congress

S-CORP Marked Key Legislative Successes in 2005, Though Major Battles Loom in 2006

New Congressional Budget Doesn’t Protect Tax Relief

The President’s Budget