Christine Walizer, Author at The S Corporation Association

JCT Confirms Assault on Main Street

The distribution tables released Tuesday on Chairman Neal’s tax increase package tell us what we already knew – the Neal bill is an all-out assault on family-owned businesses, together with the thousands of communities and millions of employees that depend on them.

According to the tables, under the Neal bill taxpayers making more than $1 million a year would see their effective (average) rate rise from 30.2 percent 37.3 percent. Average rates are the taxes you pay on every dollar you earn and that is a massive increase at any time, let alone at the end of a pandemic.

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admin2021-09-16T16:48:03+00:00September 16, 2021|

Neal Draft Targets Main Street

The House Ways and Means Committee on Monday released legislation aimed at paying for the Democrats’ $3.5 trillion spending package. Committee members are scheduled to begin marking up the package today and expect to finish on Wednesday. A summary document suggests the tax hikes would amount to some $2 trillion in new revenue, with an additional $200 billion in savings resulting from increased IRS funding.

Provisions Affecting Pass-Throughs

For private businesses, the Chairman’s mark is nothing short of a declaration of war. There’s a reason more than 120 groups wrote the Committee in opposition to the package last week. …

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admin2021-10-08T16:50:54+00:00September 14, 2021|

Main Street Responds to Looming Tax Threat

With the House Ways and Means Committee kicking off its portion of the massive, $3.5 trillion budget reconciliation bill, more than 120 trade associations today voiced their strong opposition to the litany of tax hikes under consideration, and called on Chairman Richie Neal to reject any measures which would further burden Main Street businesses.

As the letter states:

Individually- and family-owned businesses are the cornerstone of the American economy. They represent nearly all businesses, they employ the vast majority of private sector workers, and they are the building block upon which innumerable communities across this country are built.

The package of tax …

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admin2021-10-14T17:00:09+00:00September 9, 2021|

The Main Street Defense of the 199A Deduction

The Section 199A deduction is under attack. Senate Finance Chair Ron Wyden’s Small Business Tax Fairness Act would phase-out the deduction for owners making between $400,000 and $500,000, while critics of the deduction continue to voice their concerns loudly and often.

This post addresses all these concerns and makes the case for why Congress should retain the full 199A deduction:

Under the Wyden bill, up to one million pass-through employers are at risk of seeing a tax hike, putting at risk up to 28 million jobs.
Coupled with the other rate hikes under consideration, including the higher corporate rate, between …

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admin2021-09-03T17:50:08+00:00September 3, 2021|

Legislative Outlook – Hurry Up and Wait?

Having secured passage of their budget resolution last week, House Democrats are wasting no time in assembling the ensuing reconciliation package with tentatively scheduled markups starting as early as Thursday. It’s the start of an all-out sprint for Democrat lawmakers as they work to meet a host of high-profile September deadlines.

We’ll have a lot more clarity as the committees – particularly Ways and Means – make public their portions of the reconciliation package, but last week’s events at least give us a sense of the timing and roadblocks facing its adoption. Below is our commentary on those developments.

About that …

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admin2021-08-31T18:37:17+00:00August 31, 2021|