Tax Policy - The S Corporation Association

Lessons from the Failed Senate Energy Tax Package

As reported in the press, last week the Senate failed to add a sizable energy tax package to its comprehensive energy bill prior to adoption.

The Senate voted 57-36 not to end debate (60 votes are needed) on the tax package that was offered as an amendment to the broader energy bill. This vote fell short despite the fact the Finance Committee reported the package out by a bipartisan vote of 15-5 vote just a few days earlier.

While the package itself has little directly affecting S corporations, there are a couple lessons to draw from the challenge Senate leadership is having …

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admin2019-02-06T18:44:37+00:00June 29, 2007|

Small Business Tax Package Signed Into Law

Congress returns this week following its Memorial Day recess. As expected, the Small Business tax package was signed into law along with the Iraqi War funding just before they left. This package included a number of S corporation reforms that we have been working on for years, and represents a significant improvement to the rules governing how S corporations operate.

Key reforms included relief from the dreaded “sting tax” as well as allowing trusts that hold S corporation stock to deduct their interest expenses, something other trusts have long been allowed to do. And while we did not get everything we …

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admin2019-02-06T18:44:38+00:00June 5, 2007|

Small Business Tax Package — Part II!

House Leadership has indicated that it will attach the $4.8 billion Small Business tax package to the second Iraq supplemental spending bill to be considered by the House this week. The tax package will likely remain the same, while the underlying spending bill will fund operations in Iraq for just three months. This approach will likely pass the House, but it appears to have significant challenges in the Senate and at the other end of Pennsylvania Avenue. As CongressDaily reported yesterday morning:

“McConnell labeled as a “uniquely bad idea” the House proposal backed by Appropriations Committee Chairman Obey …

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admin2019-02-06T18:44:38+00:00May 9, 2007|

Small Business Tax Package Agreement

Late Friday evening, House and Senate tax writers announced they had come to an agreement on the Small Business Tax Package to accompany an increase in the minimum wage. While this package is destined to join the current Iraq Supplemental and get vetoed by the President, the expectation is that the package will then be included in the subsequent supplement spending bill that should get signed into law. As BNA reports:

The package, the culmination of several weeks of impasse in reconciling vastly different House and Senate packages followed by a short spurt of negotiations, will be included in the supplemental …

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admin2019-02-06T18:44:38+00:00April 23, 2007|

Small Business Tax Package in Play

The small business tax package is back in the news. What we heard yesterday — confirmed by press reports this morning — is that the four top tax writers (Baucus, Rangel, Grassley, and McCrery) have tentatively agreed to a $5 billion package (over 10 years) of provisions to help small and closely held businesses offset the higher labor costs of a minimum wage increase. Staff for those members are busy filling out the details of what will go into the $5 billion pot and how that revenue impact will be offset. According to CongressDaily:

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admin2019-02-06T18:44:38+00:00April 20, 2007|