Tax Policy - The S Corporation Association

Middle-Class Tax Increases on the Horizon

Last Wednesday’s The Hill included a comprehensive overview of the exploding spending and deficit picture and calls into question President Obama’s ability to live up to his long-held promise not to raise middle class taxes. It’s worth a look.

For the past half-year, your S-CORP team has focused on President Obama’s long-stated goal to pay for health care reform and his other spending priorities by raising taxes on American families making more than $250,000 per year, all while cutting taxes for middle-class families.

With the Federal deficit approaching $2 trillion this year, however, just how does one expand government, reduce the deficit, …

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admin2019-02-06T17:21:57+00:00April 21, 2009|

Small Business and Tax Rates — The Debate Continues

The advocates over at the Center for Budget and Policy Priorities (CBPP) issued a new study last week demonstrating, once again, how few “real” small businesses would be adversely affected by raising the top two income tax rates back to their old 39.6 and 36 percent levels. As their study states:

“Some critics of the President’s budget charge that his proposals to roll back tax breaks for taxpayers with incomes over $250,000 would harm small businesses. In fact, only 8.9 percent of people with any …

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admin2019-02-06T17:22:35+00:00March 4, 2009|

Obama’s Tax Plans Take Shape

President Obama released a 140-page outline of his budget today that reflects his revenue and spending priorities for the next couple of years.

Chief among these is a major change in federal health care policies. As made clear in his speech to Congress the other day, health care reform is first among the several big reforms on the table and his budget sets aside $634 billion of the estimated $1 trillion he plans to spend on the plan.

To raise the $634 billion, Obama calls for: 1) limiting itemized deductions for …

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admin2019-02-06T17:22:35+00:00February 26, 2009|

Estate Tax Fix Poses Threat for Family Businesses

As we have noted, the stars appear to have aligned for a big estate tax compromise later this year, most likely to be focused on freezing the 2009 rules for at least a year. This means the current top tax rate of 45 percent and $3.5 million exclusion will stay the same for a while. But there’s lots of mischief that can take place under those broad levels.

As tax reformers will tell you, the base is just as important in determining your tax burden as the rates.

With that in mind, several S-Corp allies have pointed out legislation introduced by Congressman …

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admin2019-02-06T17:22:35+00:00February 20, 2009|

Estate Tax Compromise Under Development

Looks like Congressional Democrats and President-elect Obama’s economic team are already beginning work on legislation to prevent a full repeal of the estate tax in 2010. The Wall Street Journal reports that President Obama’s plan will come out in February as part of his FY 2010 budget proposal and could be acted on by the House and Senate soon after. As the Journal reports:

The estate tax would be locked in permanently at the rate and exemption levels that took effect this year. That would exempt estates of $3.5 million — $7 …

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admin2019-02-06T17:22:36+00:00January 14, 2009|