Home/Tax Policy

S Corps for Everyone!

As we previously mentioned, the Senate Budget Committee held a hearing yesterday to discuss various proposals to “make the wealthiest people and largest corporations pay their fair share of taxes.”  It was predictably dull and partisan.  There was, however, one moment of “Oh, that’s interesting.”

It started when Senator Tim Kaine (D-VA) spoke about the concept of good tax policy, and where the tax code should go:

I think there’s a lot of big ideas about tax reform that are out there…I hope we might get into a big, structural tax reform discussion. 

I’m a little bit nervous – I think we’ll

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2021-03-26T14:27:47+00:00March 26, 2021|

COVID Bill Signals Tax Hikes to Come

With impeachment over, congressional Democrats are turning their attention to their $1.9 trillion coronavirus relief bill. House committees spent prior weeks marking up pieces of the bill, which will be consolidated into a single “reconciliation” package by the Budget Committee today and then considered by the full House later this week.

For the Main Street business community, the process here is as important as the policy.  The congressional majority chose to use reconciliation to move their COVID relief package, which raises several issues worth highlighting.

Senate Rules Under Pressure

The primary benefit of using reconciliation in the Senate is the ability to pass

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2021-03-05T18:46:22+00:00February 22, 2021|

Bloomberg Is Wrong About Tax Rates

Where does fairness lie? At a time when Main Street is struggling to stay open while Wall Street flies high, you might be surprised that Bloomberg thinks it’s private companies organized as S corporations and partnerships that have the advantage, at least when it comes to taxes.

The Bloomberg story at issue reviewed the 2017 Tax Cuts and Jobs Act and whether it lived up to the promises made by its sponsors, including the goal of balancing out the tax treatment of private and public companies. Here’s the key graph:

“Just in

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2021-03-05T18:46:47+00:00February 1, 2021|

Don’t Sell Out Main Street

Congress is on the cusp of passing a truly bipartisan assistance package to help the families and employers through the last months (yeah vaccines!) of the COVID-19 pandemic.  As part of this package, the entire business community and its Hill allies support expanding and extending the Paycheck Protection Program (PPP) while clarifying congressional intent on the tax treatment of PPP loans.

As we’ve written before, getting the tax treatment of PPP loan forgiveness correct would avoid a surprise $120 billion tax hike on the five million employers who took out PPP loans.  Those employers were promised tax-free forgiveness when

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2020-12-29T17:28:16+00:00December 17, 2020|

PPP Tax Treatment on the Line

With Congress poised to adopt a compromise COVID-19 package in the next week, a BIG outstanding issue is how loans forgiven under the Paycheck Protection Program (PPP) will be taxed.  It’s literally a $160 billion sword hanging over the head of Main Street.

On one side, you have key Congressional leaders and the entire business community in agreement that Congress wanted this money to be tax-free – more than 600 trades wrote to Congress just last week!  On the other hand, you have the IRS and the out-going Secretary of Treasury who calls it “double-dipping.”  Here’s the case for

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2020-12-29T17:36:51+00:00December 15, 2020|