Tax Policy - The S Corporation Association

House Passes Marginal Tax Increase

Foreshadowing things to come, the House on Thursday adopted legislation to increase Veterans education benfits by raising marginal tax rates on individuals – including S corporation shareholders – making $500,000 a year or more. As Congress Daily reported:

“The House, as one portion of a three-part war funding supplemental spending package, approved a provision that would pay for a four-year college degree at any public university for veterans of the wars in Iraq and Afghanistan for at least three years. To pay for the increase — $52 billion over 10 years — the House Thursday voted to impose a 0.47 percent …

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admin2019-02-06T18:06:08+00:00May 16, 2008|

More Details, Little Clarity on the Tax Front

Just to keep everybody up to speed, there are a couple recent tax items of note.

First, CongressDaily reports the House may take up yet another extender package prior to the Memorial Day recess. This package reportedly includes energy provisions as well as the expired extenders like R&E and the state and local sales tax deduction. An extension of the Alternative Minimum Tax “patch” does not appear to be under consideration.

Regarding the central issue of whether the revenue impact of the package will be offset by accompanying tax increases, Majority Leader Steny Hoyer …

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admin2019-02-06T18:06:09+00:00May 8, 2008|

Stimulating S Corporations

S Corporation Association Chairman Richard Roderick weighed in on behalf of S corporations yesterday regarding the second stimulus package being developed in the House. In a letter to Small Business Committee Chairwoman Nydia VelC!zquez, Roderick argued that any bill moving through Congress should include assistance to S Corporations.

In particular, the letter advocates for relief from the built in gains tax (BIG) that forces so many S corporations to sit on appreciated assets that could be put to better use. As the letter states:

“According to government statistics, hundreds of thousands of S corporations …

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admin2019-02-06T18:06:09+00:00May 2, 2008|

Small Business Week 2008

Washington loves small businesses, at least in its rhetoric.B April 20-26^th was Small Business Week.B The annual event is devoted to recognizing the “determination and ingenuity of America’s workers and entrepreneurs who play a vital role in building a more prosperous future for our country.”

Since 1963, every President has declared National Small Business Week to formally recognize the important role of small businesses in America.

In a discussion with small business owners, President Bush argued that “every day ought to be Small Business Day in America” and that government’s role should be “to create an …

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admin2019-02-06T18:06:09+00:00April 30, 2008|

Did Somebody Say Tax Reform?

Last Tuesday the Senate Finance Committee held the first of several planned hearings on tax reform. These hearings are being held in preparation of the 111^th Congress, when the Ways and Means and Finance committees will be tasked with re-writing a significant portion of the tax code.

As we’ve pointed out before, fully one-tenth of the tax code either expires in the next couple years or is made up from the marginal tax revenue captured by the individual Alternative Minimum Tax. Producing legislation in one Congress to address both those issues is going to …

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admin2019-02-06T18:43:57+00:00April 21, 2008|