Tax Policy - The S Corporation Association

Section 199A Reality Check

Chuck Marr, who heads up tax policy at the Center on Budget and Policy Priorities, took to Twitter recently to slam the Section 199A deduction. It’s a perfect example of the empty rhetoric deployed by critics of the provision:

There’s a lot to unpack here so we’ll start from the top. First, Marr is correct that pass-through businesses do not pay the corporate tax – they pay tax at individual rates.

These days, that’s a critical distinction, as the 37-percent top individual rate is well above the 21-percent corporate rate. So are …

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admin2023-08-17T17:52:24+00:00August 17, 2023|

Support for 199A Reaches New Heights

The effort to make permanent the Section 199A Main Street business deduction just hit a significant milestone.

In just two weeks the Main Street Tax Certainty Act (H.R. 4721), introduced by Congressman Lloyd Smucker, has garnered the support of more than 100 House cosponsors. Among those backing the legislation are Democratic Representatives Henry Cuellar (TX) and Josh Gottheimer (NJ), and all 25 Republican members of the Ways & Means Committee.

Section 199A was enacted in 2017 to encourage job creation and new investment by private businesses. It also helps private companies compete with large, publicly-traded corporations. Without the deduction, pass-throughs would …

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admin2023-08-01T14:36:44+00:00August 1, 2023|

More on Moore

We promised more on Moore v. United States, and here it is. The pending court case is garnering lots of attention, including the WSJ, the Tax Policy Center, Tax Notes, former tax staffer George Callas, even former Senator John Breaux. What’s got them all worked up?

9^th Circuit Goes Big

At issue is whether Charles and Kathleen Moore realized income even though the business they partially owned never distributed earnings. Before you start yawning, be advised this case could have implications for all sorts of tax policy, including mark-to-market proposals, wealth taxes, even …

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admin2023-07-28T14:03:56+00:00July 28, 2023|

NY Needs R&E Expensing!

Lynn Mucenski-Keck, an S-Corp Advisor and Principal at the accounting firm Withum, is out with new Forbes piece highlighting how punitive the new research and experimentation (R&E) tax regime is to businesses in New York and across the country.

With New York already fighting to retain businesses, the capitalization of federal R&E expenditures may result in more companies moving out of New York to balance their federal and New York State tax bills. One of the attractions for New York businesses is our highly educated and talented workforce. New York is consistently rated as one of the top ten …

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admin2023-07-25T20:40:32+00:00July 25, 2023|

Main Street Certainty in the House!

Congressman Lloyd Smucker today will introduce the Main Street Tax Certainty Act, legislation to make permanent the Section 199A deduction. The bill mirrors S. 1706, recently introduced by Senator Steve Daines, so the campaign to protect Main Steet from looming tax hikes is now bicameral and bipartisan.

The legislation introduced today enjoys widespread support in the House. Over 80 original cosponsors joined Smucker in its introduction, including Democratic Representatives Henry Cuellar (TX) and Josh Gottheimer (NJ), and all 25 Republican members of the Ways & Means Committee.

Meanwhile, over 160 trade associations joined our letter thanking Congressman Smucker and Senator …

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admin2023-07-18T18:45:41+00:00July 18, 2023|