Tax Policy - The S Corporation Association

Senate Finance Committee Holds Tax Gap Hearing

S-CORP continues to closely monitor proposals to increase taxes on S corporations through increased payroll taxes or by repealing the LIFO method of inventory accounting.B On Tuesday, the Senate Finance Committee held a hearing entitled “A Tune-Up on Corporate Tax Issues: What’s Going on Under the Hood?” While most of the testimony focused on the Tax Gap, IRS enforcement, and broad reform of the corporation income tax, one witness focused his remarks and written testimony almost exclusively on why LIFO should be repealed.

Dr. George Plesko, Associate Professor at the University of Connecticut Business School, spent most of his time building …

(Read More)

admin2019-02-06T18:47:19+00:00June 15, 2006|

S-CORP Weighs in On Corporate Tax Reform

It’s his last term in Congress, and Ways and Means Chairman Bill Thomas (R-CA) is working hard right up until the end. While few observers think tax reform will make tangible progress before November’s mid-term elections, the Select Revenue Measures Subcommittee is churning through the myriad of issues involved in reforming the tax code for businesses operating domestically and internationally, laying the groundwork for future legislative action.

S-CORP is engaged, submitting comments to the Committee on the importance of preserving the unique tax treatment of S corporations while outlining its concerns with the recommendations put forward by the President’s Advisory Panel …

(Read More)

admin2019-02-06T18:47:19+00:00May 25, 2006|

President Signs Tax Bill

Before a South Lawn crowd today, President Bush signed into law H.R. 4297, the “Tax Increase Prevention and Reconciliation Act of 2005″. Cumbersome name aside, the bill is a relatively streamlined effort to extend several expiring tax provisions, including the lower tax rates on capital gains and dividends, and middle-class protection from the Alternative Minimum Tax.

S-CORP’s focus now turns to the second tax bill, known in tax circles as the “trailer package”, and the open question of which of the provisions excluded from the first bill will make it into the second (“trailer trash”). S-CORP continues to work with friends …

(Read More)

admin2019-02-06T18:47:19+00:00May 17, 2006|

No Agreement on H.R. 4297

House and Senate tax writers failed to reach an agreement this week on a final tax reconciliation conference report (H.R. 4297), despite earlier predictions that a final bill would be unveiled this week. It appears that the final bill will include both the AMT relief the Senate wants and the extension of the lower rates on investment income the House wants, as well as provisions necessary to cover the out-year revenue losses of the lower rates. According to Senate Finance Committee Chairman Grassley, these items add up to $74 billion over five years, $4 billion more than the budget limit. …

(Read More)

admin2019-02-06T18:47:20+00:00April 28, 2006|

Tax Relief Bill Negotiations Proceed

Today’s Congress Daily includes a number of points about the conference between House and Senate negotiators:

“One source said April 25 it appears House negotiators will be willing to accept at least some of the offsets that were included in the Senate’s bill.”
“It also appears that negotiators are simultaneously working out the details of a second bill of tax break extenders that will be dropped from the reconciliation bill, the source said.”
“Pressure from the leadership and administration remains on conferees, Senate Finance Committee Chairman Charles Grassley (R-Iowa) said April 24, but he added that it was unclear whether a deal could …

(Read More)

admin2019-02-06T18:47:20+00:00April 26, 2006|