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The State of the Union and Taxes – What to Expect

Leading up to tonight’s State of the Union address, advocates of the stalled Build Back Better Act appear to be spinning their wheels again. Instead of listening to their detractors and making the necessary changes, they rely instead on the idea that if only they improve their messaging a little bit, the whole plan could still come together.

Last week, they blamed the press for describing the bill, accurately, as a package of social spending provisions.  According to POLITICO:

As the Biden administration looks over the cadaver that is their Build Back Better agenda, wondering what components, if any, it can

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2022-03-01T22:41:50+00:00March 1, 2022|

Beware of Pollsters on Taxes

According to POLITICO and numerous other news outlets, top White House advisors remain convinced that pushing policies to make wealthy individuals and corporations start “paying their fair share” is a winning strategy in its own right, and not just a means of paying for other programs:

With that in mind, the Democratic pollsters John Anzalone and Matt Hogan are urging the party’s candidates to focus on forcing the rich and corporations to pay more in taxes.

Just a few problems with that prescription.  First, successful Americans already pay their fair share.  According to the IRS, the top 50 percent of

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2022-02-15T23:25:22+00:00February 15, 2022|

Taking Manchin at His Word

When the Build Back Better Act (BBB) made its way to the Senate last year, an odd trend emerged: Every time West Virginia Senator Joe Manchin would make a clear statement regarding his position on the BBB, the Capitol Hill press corps would respond by ignoring him.

This began last September, when Sen. Manchin made public a signed agreement with Majority Leader Chuck Schumer outlining Manchin’s position:

The West Virginia senator has been distributing the document to Democratic colleagues and leaders in recent days to underscore that he has outlined his red lines on President Joe Biden’s jobs and families

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2022-02-04T16:30:11+00:00February 4, 2022|

BBB Will Make Inflation Worse

Americans are correctly alarmed by the recent spike in prices, while Senator Manchin has made rising prices a key rationale for his opposition to the massive Build Back Better Act (BBB).  Both believe the BBB, particularly the tax hikes, will drive up prices even further.

President Biden and others, on the other hand, push back on the idea that the BBB will drive up prices.  As the President said in his press conference the other day:

My Build Back Better plan cuts the price of drugs…it cuts the cost of elder care and it will do all of this without raising

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2022-01-21T21:11:50+00:00January 21, 2022|

SALT Parity Offers Massive Savings for Main Street

With the Build Back Better Act stalled in the Senate, states should resume efforts to enact our SALT Parity legislation this year.  The SALT cap appears here to stay, at least through 2025, and the savings potentials for family businesses are substantial.

How substantial?  As reported by Richard Rubin in the Wall Street Journal, new numbers out of New York show that that S corporations and partnerships paid $11 billion under the new Pass-Through Entity (PTE) tax the state adopted back in April, translating into between $3 and $4 billion in federal tax savings.  $4 billion!  That’s just one

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2022-01-14T17:24:47+00:00January 14, 2022|