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Talking Taxes in a Truck Episode 14: “Confusion Reigns”

This week, Democrat leadership announced they had agreed to a “framework” on the revenue portion of their $3.5 trillion reconciliation bill. But with moderates and progressives at odds over both the timing and content of the final product, what exactly does this mean?  Will a vote on the bipartisan infrastructure package take place Monday?  When might we see a package that could actually pass the Senate?  Or the House?  Our guest, Joe Lieber, Director of Research and Political Analyst at Washington Analysis, is back to demystify it all and clarify where things go from here.

This episode of Talking Taxes in a

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2021-09-24T14:04:53+00:00September 24, 2021|

JCT Confirms Assault on Main Street

The distribution tables released Tuesday on Chairman Neal’s tax increase package tell us what we already knew – the Neal bill is an all-out assault on family-owned businesses, together with the thousands of communities and millions of employees that depend on them.

According to the tables, under the Neal bill taxpayers making more than $1 million a year would see their effective (average) rate rise from 30.2 percent 37.3 percent.  Average rates are the taxes you pay on every dollar you earn and that is a massive increase at any time, let alone at the end of a pandemic.

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2021-09-16T16:48:03+00:00September 16, 2021|

The Main Street Defense of the 199A Deduction

The Section 199A deduction is under attack.  Senate Finance Chair Ron Wyden’s Small Business Tax Fairness Act would phase-out the deduction for owners making between $400,000 and $500,000, while critics of the deduction continue to voice their concerns loudly and often.

This post addresses all these concerns and makes the case for why Congress should retain the full 199A deduction:

  • Under the Wyden bill, up to one million pass-through employers are at risk of seeing a tax hike, putting at risk up to 28 million jobs.
  • Coupled with the other rate hikes under consideration, including the higher corporate rate, between

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2021-09-03T17:50:08+00:00September 3, 2021|

Legislative Outlook – Hurry Up and Wait?

Having secured passage of their budget resolution last week, House Democrats are wasting no time in assembling the ensuing reconciliation package with tentatively scheduled markups starting as early as Thursday. It’s the start of an all-out sprint for Democrat lawmakers as they work to meet a host of high-profile September deadlines.

We’ll have a lot more clarity as the committees – particularly Ways and Means – make public their portions of the reconciliation package, but last week’s events at least give us a sense of the timing and roadblocks facing its adoption. Below is our commentary on those developments.

About that

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2021-08-31T18:37:17+00:00August 31, 2021|

White House Shortchanges Main Street

The recent White House fact sheet on small businesses and tax hikes is highly misleading.  It exaggerates the number of small businesses in order to minimize the harm President Biden’s tax hikes will inflict on Main Street, it ignores many of the tax hikes under consideration, and it dismisses the economic importance of those businesses targeted for higher taxes.

The reality is that the tax hikes moving through Congress target millions of business owners, putting tens of millions of jobs in danger:

  • Somewhere between 2 and 3 million small and family-owned businesses will be subject to higher taxes under the

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2021-08-23T15:19:47+00:00August 21, 2021|