Tax Policy - The S Corporation Association

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|

Election Impact on S Corporations

We’ll write more about the election in coming months, but wanted to send out a quick summary of how the elections yesterday affect the S corporation community.

We’ve noted several times that President-elect Obama’s tax policies are not friendly to flow-through businesses. The combination of higher tax rates and a broader base has the potential to significantly increase the marginal and effective tax rates paid by S corporations.

One factor that may retard the push towards higher rates is the weakening economy. Now that the credit crisis appears to be under control, investors and businesses are faced with a classic cyclical slowdown …

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admin2019-02-06T17:22:36+00:00November 5, 2008|

S Corp Champions Push BIG Relief

As Congress moves forward on the stimulus bill, the S Corporation Association continues to push Built-In Gains tax relief as a vital part of the package. If the economy is suffering from a lack of capital, BIG relief can help S corporations access capital currently locked-in by punitive tax rates.

As part of that effort, S-Corp allies Senators Lincoln (D-AR), Hatch (R-UT), Cardin (D-MD), and Snowe (R-ME) sent Senate leadership a letter today advocating for including BIG relief in the stimulus package. Their letter states:

Our proposal, as included in the S Corporation Modernization …

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admin2019-02-06T17:22:36+00:00October 29, 2008|

Congressional Overview

We are nearing the finish line for the 110^th Congress with more on the table than when we started nearly two years ago.

None of the 12 bills to fund the government have been adopted. Tax provisions that expired at the end of 2007 remain to be extended. And the collapse of the subprime mortgage market that began a year ago with the failure of several hedge funds has grown into a full fledged credit crisis that, according to the Administration, threatens to harm the entire economy.

It appears Congress will stay in through next week and will have to address the …

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admin2019-02-06T18:06:06+00:00September 26, 2008|

Tax Policy and Small Business

Earlier this week, the Wall Street Journal reviewed the most recent comments by Senator Barack Obama regarding his plans for tax policy.

As we noted in the past, the bias is for higher tax rates beginning sometime in the next Congress. This bias stems from the make-up of Congress and the scheduled expiration of the 2001 and 2003 tax cuts and exists regardless of who becomes President.

That said, the S corporation community should pay particular attention to some of the proposals put forward by the Obama campaign - specifically, his plan to raise marginal tax rates …

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admin2019-02-06T18:06:07+00:00September 12, 2008|