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199A Takes Center Stage

As we wrote earlier this week, it’s a busy April for tax policy. The packed agenda kicked off Tuesday with a hearing at the House Small Business Committee entitled, “Exploring the Adverse Effects of High Taxes and a Complex Tax Code.” It was the perfect opportunity to highlight the tax priorities that are top of mind for the Main Street business community and did not disappoint.

The hearing had a number of high points but we’ll flag just a few, starting with witness Raymond Huff, President of HJB Convenience Corporation based in Denver, CO.

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2024-04-12T15:43:11+00:00April 12, 2024|

A Taxing Month for Lawmakers

Congress is back in session this week for what promises to be a busy April for tax policy. Here is a quick overview of what’s happening.

Smith-Wyden Bill in Senate

The big-ticket item is the $80 billion Tax Relief for American Families and Workers Act. This bill easily passed the House back in January but has remained stalled in the Senate since.

That’s largely due to Republican tax writers’ objections over the structure of the child tax credit, among other items. As Politico reported this morning:

Key Senate Republicans, including the ranking member of the Finance Committee, Sen. Mike Crapo of Idaho, and

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2024-04-08T17:00:24+00:00April 8, 2024|

C Corps for Everybody?

S-Corp’s mantra for tax reform is “S corps for everybody!”  Tax all businesses once, tax them when the money is earned, tax them at a reasonable rate, and then leave them alone. In other words, tax them like S corporations. Moving the Tax Code towards what we call a “single tax system” would level the playing field for all types of businesses while eliminating the complexity and distortions created by the double corporate tax.

This approach contrasts completely with the vision outlined in last week’s paper by Kyle Pomerleau and Don Schnieder (P-S).  There are lots of moving parts

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2024-04-05T12:33:08+00:00April 4, 2024|

More than a Dime’s Worth of Difference

Two events took place this week which demonstrate just how remarkably divergent the potential paths of tax policy are next year.

First, the Senate Finance Committee held a rare hearing Tuesday on the challenges faced by American manufacturers. Senator Steve Daines (R-MT) took the opportunity to highlight the importance of 199A to his manufacturers in Montana and how Congress needs to act to make it permanent.

As Daines noted:

The foundation of businesses in Montana are passthrough businesses. They make up 95 percent of all businesses and employ a majority of workers

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2024-03-14T17:29:24+00:00March 14, 2024|

The “Experts” Get 199A Wrong

When Congress finishes work on the tax package pending in the Senate, we expect the conversation to pivot rapidly to what we should do about all those expiring TCJA provisions at the end of 2025.

For S-Corp and its allies, our priority is to make the Section 199A deduction permanent and a big hurdle there is the lack of understanding of how pass-throughs are taxed and why the Section 199A small business deduction is critical to their success.

For example, of all the Republicans who served on Ways and Means during the TCJA debate, only five remain today. The staff

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2024-02-22T15:04:04+00:00February 20, 2024|