The Washington Wire Archive - The S Corporation Association

Rate Debate Continues

Happy Thanksgiving to everyone. Here’s a quick update on the tax outlook.

Congress returned last week, but didn’t make much progress. The big news was the cancellation of the bipartisan leadership meeting at the White House on the 18^th; that meeting is now scheduled for November 30^th. Politico has a really good write-up on what happened, but what was the impact on the tax debate?

In our view, mostly timing. Nobody expected the get-together to result in a deal, but we did expect it to jump start discussions, with the possibility of some sort of agreement worked out by the time …

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admin2019-02-04T15:47:03+00:00November 22, 2010|

Lame Duck and Tax Policies

Congress is set to return for its lame duck session the week after next. With Thanksgiving in the middle and Christmas at the end, Congress has maybe three weeks to fund the government and figure out what to do with tax policy.

Before the election, we believed two outcomes were possible on extending the tax rates: either Congress adopts a one-year extension of everything (with some middle ground for the estate tax), or Congress does nothing and the new Republican House takes the issue up first thing in January.

The President’s original preference of extending only the middle-class tax relief does not …

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admin2019-02-04T15:47:03+00:00November 3, 2010|

The S-CORP Crystal Ball — Tax Writing-Committees in 2011

The Intrade Prediction Markets show Republicans have a 94 percent chance of taking the House today, but only a 42 percent chance of controlling the Senate. If Intrade is correct, what does that mean for the tax-writing committees?

House Ways and Means

Big changes in store here.Democrats maintain a 63 percent majority of the Committee (slightly better than their 59 percent majority in the House) -or 26 Democrats and 15 Republicans. If the House flips, we expect the committee ratios to flip as well, give or take a seat – that means about 25 Republicans and 15 Democrats.

For Democrats, …

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admin2019-02-04T15:47:03+00:00November 2, 2010|

Taxes and Elections

With Congress gone, we thought we might dust off the old S-CORP Crystal Ball and make some predictions. By all accounts, the seats in play this cycle are well above the norm and this could go down as an historic election, much like 1974 or 1994.

So what do we expect? We predict that Republicans will control the House next year, while Democrats will retain the majority in the Senate, albeit with just a one or two vote majority. We come to this conclusion after reviewing the following sources:

We recommend each, especially …

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admin2019-02-04T15:47:03+00:00October 19, 2010|

President Signs BIG Relief!

In a capital-starved economy, what makes more sense than allowing firms access to their own capital? For one year beginning in 2011, hundreds of thousands of S corporations around the country will be able to do just that, thanks to the efforts of the S Corporation Association and its allies in Congress, particularly Senators Grassley, Lincoln, Hatch, and Snowe and Representatives Kind and Reichert.

On September 27^th, President Obama signed into law the Small Business Lending Fund Act of 2010 (HR 5297). Among other business friendly provisions, the bill includes one of the S Corporation Association’s tax priorities, a reduction in …

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admin2019-02-04T15:47:03+00:00September 28, 2010|