Tax Policy - The S Corporation Association

Political Landscape of 2nd Session of the 109th Congress

The second session of the 109th Congress has begun! The Senate was in session for a portion of January to consider President Bush’s nomination of Samuel Alito to the Supreme Court with the final vote to confirm him occurring on January 31st. Both the House and the Senate returned in earnest to legislative business that day which was also the day of the President’s State of the Union address. This week the President unveils his FY 2007 budget proposal which is likely to include new initiatives for energy independence and healthcare affordability.
First and foremost on the minds of House Republicans …

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admin2019-02-06T18:48:17+00:00February 6, 2006|

S-CORP Victory in Senate Tax Bill; S Corporation Reform Legislation Introduced in the House!

November has been an active and exciting month for the S Corporation Association and we have much to be thankful for:

TWO S corporation modernization provisions approved by the Senate as part of a larger tax package
Efforts to oppose increased payroll taxes on S corporations continue to be successful
Congressman Clay Shaw along with Congressman Jim Ramstad introduce S corporation reform legislation in the House
Joint Committee on Taxation estimates revenue loss on built-in gains tax relief legislation

Before adjourning for a three-week recess, the Senate approved its reconciliation tax package that includes two provisions from the Subchapter S modernization and reform bill that …

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admin2019-02-06T18:48:18+00:00November 29, 2005|

Tax Relief Delayed - Pressure for Offsets Grows

Congress returns to legislative business this week following a week long Columbus Day recess. With numerous outstanding issues for Congress to consider before adjourning for the year (possibly by Thanksgiving, but December remains a distinct possibility), the small and family owned business community must continue to be vigilant for any misguided efforts to raise payroll taxes on S Corps and other small businesses.

The first priority of the tax writing committees continues to be legislation to encourage the physical restoration of the areas hit by Hurricane Katrina. Both the Senate Finance Committee and the House Ways and Means Committee are expected …

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admin2019-02-06T18:48:18+00:00October 18, 2005|

S-CORP Fights Proposed Tax Increases As Congress Searches for Revenue

As S-CORP members will recall, this year began with a Joint Committee on Taxation (JCT) proposal to impose a nearly 3 percent additional tax on the full distributable share of profits for S corporation shareholders. The proposed tax would raise an astonishing $57.4 billion over ten years by applying to shareholders of S corporations as well as to partnerships. Then in May, the Department of Treasury’s Inspector General for Tax Administration in testimony before the Senate Finance Committee (May 25, 2005) also endorsed the proposition that the net earnings of S corporations should be subject to payroll taxes. This was …

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admin2019-02-06T18:48:18+00:00October 12, 2005|

S CORP ALLIANCE CONTINUES TO MAKE HEADLINES!

For those who missed it, Monday’s Congress Daily does an excellent job of outlining the challenge confronting S Corporations and other flow-through businesses as Congress prepares to take up reconciliation, tax reform, an extension of expiring tax provisions, and other tax legislation this Congress. Continued interest by the press regarding the Joint Committee’s recommendation is a clear signal this issue is not going away…

JCT and the Treasury Department’s Inspector General for Tax Administration have proposed changing the rules to ensure that payroll taxes are levied on all a firm’s income, regardless of how it is counted. Concern in the small …

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admin2019-02-06T18:48:18+00:00August 11, 2005|