Tax Policy - The S Corporation Association

Congress Returns to Small Business Bill

Congress is back this week, and the pending business before the Senate is the small business tax bill that passed the House last month. Here’s BNA‘s review of the plan:

The Senate is expected to resume consideration July 13 of a small business lending bill with the hope of completing floor debate in only a few days, although a Democratic leadership aide warned that it might depend on Republican cooperation. Currently awaiting consideration is a substitute amendment (S. Amdt. 4402) that carries roughly $12 billion in tax cuts aimed at small businesses, including a highly sought after provision to extend …

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admin2019-02-06T17:20:59+00:00July 13, 2010|

S-CORP Blocks Payroll Tax Hike!

Armed with nothing more than the better policy argument, team S-CORP successfully rallied business groups and our friends on the Hill to defeat a proposed $9 billion payroll tax hike on S corporations last week.

The proposal, included in a larger package of so-called tax extenders, would have applied payroll taxes to all the income of service-oriented S corporations if they met a couple of tests. As your S-CORP allies observed, the new tests envisioned were more complicated and less enforceable than current law, meaning we would have taken a step backward had Congress enacted them.

The biggest ally we had in …

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JeremiahStaes2019-02-06T17:20:59+00:00July 2, 2010|

Baucus III

The tax community is still waiting for the third version of the Baucus substitute to be released. A “trial balloon” draft circulated yesterday made certain changes, but failed to address many of the sticking points holding up the overall bill.

Meanwhile, Senators Baucus and Reid spent most of yesterday negotiating with swing Republican votes — at this point, just Maine Republican Senators Olympia Snowe and Susan Collins — to identify what changes are necessary in order to gain the 59^th and 60^th votes needed. As CongressDaily reports:

The chief target appears to be $24 billion to extend higher Medicaid matching funds …

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admin2019-02-06T17:20:59+00:00June 23, 2010|

Latest On Extenders and the Payroll Tax

So the Senate just adopted a stand-alone, six month Doc Fix. Adoption of this provision sends a couple signals for the broader extender package.

This action follows on last night’s failed 56-40 cloture vote on Baucus II. While this vote represented a significant improvement over the 45 votes in support of Baucus I, it still signaled to the Senate (and House for that matter) that the extenders plus package was not going to be completed this week. Hence the need for the stand-alone Doc Fix. Moreover, the adoption of this very large — and ultimately offset — spending item suggests that …

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admin2019-02-06T17:20:59+00:00June 18, 2010|

Baucus Substitute, Part II

After falling 15 votes shy of the 60 needed to close debate and move forward on the “extender plus” package, Finance Chairman Max Baucus offered up a second substitute last evening and Senator Reid immediately filed a cloture motion to end debate. That motion requires 60 votes and the vote would take place on Friday.

The new Baucus substitute is “slimmer” than the previous effort and apparently was designed to mirror the deficit impact of the House-passed bill. As such, its goal is not only to attract 60 votes in the Senate, but also to pass the House as well. As …

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admin2019-02-06T17:20:59+00:00June 17, 2010|