Word on the street is that House Republicans will put together a package of pro-growth provisions later this Spring, including a tax title. The effort is timely given our uncertain economic outlook and the current tax landscape, and it works especially as a counter to the Biden administration’s aggressively anti-Main Street budget proposals.

What might make it into the tax package?  Here are some suggestions.

Inflation, EBIT, and 163(j)

A big revenue raiser in the Tax Cuts and Jobs Act was the new cap on interest deductibility. Starting in 2018, the amount of interest expense a business could write off was …

(Read More)

President Biden unveiled his budget proposal for the upcoming fiscal year yesterday and, as we predicted, it’s packed with tax hikes and other poorly-conceived policies that directly target the Main Street business community. The document calls for $4 trillion in tax hikes, nearly half of which would fall on the backs of small and family-owned businesses.

In response, S-Corp joined with 85 trade associations yesterday – including the American Farm Bureau Federation, Associated General Contractors, and the National Restaurant Association – to urge lawmakers to strongly oppose these provisions. The letter reads:

The President claims his budget will only …

(Read More)

The President is set to release his third budget later today and, as in the past, it’s sure to call for higher taxes on family-owned businesses.  The Administration already circulated a fact sheet on its Medicare plan which includes a $300 billion-plus tax hike on S corporations and partnerships (see below).  Meanwhile, the President has been talking for weeks about making “super-wealthy tax cheats” pay more in taxes. That’s code for raising taxes on private companies that already pay lots of taxes.

Here’s what S-Corp members should look for in today’s release, and what it all means for them and …

(Read More)