Last week’s on, off, and on-again bipartisan deal was confusing, but it did make clear President Biden’s intention to advance a more expansive partisan package regardless of the bipartisan bill’s fate.

Work on that expanded package has already begun. Senate Majority Leader Chuck Schumer kicked off the budget reconciliation process earlier in the month, and Budget Committee Chairman Bernie Sanders is now in the process of putting together a spending framework, reportedly in the $6 trillion range, with $3 trillion in offsets.

With moderate Democratic Senators Joe Manchin, Jon Tester and others voicing concern over the size of …

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More than 100 trade associations today voiced their opposition to proposed legislation which would weaken the Section 199A pass-through deduction.

The provision is an essential part of the Tax Code, and helps individually- and family-owned Main Street businesses remain competitive in an era of economic consolidation and concentration. Section 199A has also proven critical in enabling those businesses which were hardest hit during the pandemic to survive.

As the letter released today makes clear, rolling back or otherwise limiting the deduction would have a severely detrimental effect on the 95 percent of American businesses organized as pass-throughs.

Below is the comprehensive …

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At a hearing last week, Finance Chair Ron Wyden stated:

More than two out of every three dollars earned by partnerships in this country go to the top one percent of earners. These are sophisticated entities that bring in big revenue. However, the most recent data shows that out of millions of partnership returns filed in 2018, only 140 were audited. If you’re a wealthy tax cheat in a partnership, your odds of getting audited are slightly higher than your odds of getting hit by a meteorite. It’s an audit rate of 0.00004 percent. On the other hand, …

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Earlier this week, S-Corp President Brian Reardon hosted a webinar for its membership to highlight the threat President Biden’s American Families Plan poses to individually and family-owned businesses.

The presentation focused on the “Triple Threat” pass-throughs face from the plan — it would raise taxes on their operations, their sale, and when they are passed on to the next generation.  This combination of tax hikes threatens their very ability to exist.

The webinar also addressed the faulty assumptions underpinning the Biden tax plan, including the fictions that the tax code has become less progressive …

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The inequality narrative driving tax policy this year is built on three shaky foundations: (1) that the rich have captured all the economic gains in recent years, (2) that Americans support very high tax rates, and (3) that America thrived under much higher tax rates than are being considered today.  S-Corp addressed the first two fallacies (here and here).  A recent Senate Finance Committee hearing on how to make the tax code fair provides a good example of why the third leg is just as unstable.

The hearing featured Abigail Disney, who is part of the group …

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