Tax Policy - The S Corporation Association

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|

Another Tax Gap Hearing, Another Standoff

In case you didn’t already catch the Senate Finance Committee hearing featuring Treasury Secretary Henry Paulson yesterday, here’s a quick summary.

The hearing itself was pretty entertaining and highlighted the on-going stand-off between Paulson and Finance Chairman Baucus. Baucus set a timetable for results saying that he wants a 90% voluntary compliance rate by the year 2017 – placing the responsibility on the Treasury to come up with this plan and deliver it in 90 days – July 18th – to the Committee. Paulson responded that he would be more than happy to come …

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admin2019-02-06T18:46:05+00:00April 19, 2007|

AMT Legislative Forecast

While Congress is considering numerous changes to the Tax Code, the 800 pound gorilla in tax policy these days is the projected growth of the Alternative Minimum Tax (AMT) and what exactly Congress plans to do about it. A couple of news items this week do an excellent job of setting the table for what might happen.

According to the New York Times,

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admin2019-02-06T18:46:05+00:00April 13, 2007|