The Washington Wire Archive - The S Corporation Association

More Details on the Rangel Tax Bill

At a members briefing this evening, Ways and Means Chairman Charlie Rangel outlined his “Mother of All Tax Bills” to the Committee membership. In essence, he outlined three separate bills that he will introduce in one package:

– A bill to repeal the individual AMT and provide tax benefits for low income families; A bill to extend for one year a group of tax provisions scheduled to expire at the end of 2007, including the temporary AMT “patch”; and
– A bill to cut the corporate tax rate down to 30.5 percent.

As S-Corp readers know, the tax benefits from these three …

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admin2019-02-06T18:44:36+00:00October 24, 2007|

Tax Credit Repeal – Another Hit on S Corporations?

BNA this morning has additional information about the AMT repeal legislation planned to be introduced tomorrow by Chairman Charlie Rangel. Aside from the offsets we mentioned yesterday – rate increase, LIFO repeal, manufacturing deduction repeal – all of which would raise taxes on S corporations if enacted, another potential offset is the repeal of the R&D tax credit. As BNA reports:

“The enticement will be a lower corporate rate but the pay-fors would mean shutting down loopholes,” Neal said. This includes, Neal said, killing the popular research and development tax credit. A one-year extension …

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admin2019-02-06T18:44:36+00:00October 24, 2007|

Rangel to Propose Corporate Rate Cut

The Wall Street Journal reports this morning that Ways and Means Chairman Charlie Rangel will likely introduce his “Mother of All Tax Bills” this week, a proposal marrying the repeal of the individual AMT with a cut in the top corporate rate to 30 or 31 percent.

How is he going to offset the revenue loss of all this tax relief? Here’s what we’re hearing:

Rate Increase on Upper Income Taxpayers;
Eliminate the Manufacturing Deduction;
Change the Rules Allocating Expenses on International Income;
Repeal LIFO (!);
Raise Tax Rates on Publicly Traded Partnerships and Hedge Funds.

Chairman …

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admin2019-02-06T18:44:36+00:00October 23, 2007|

AMT Dominates Tax Outlook

For the past few months, we’ve been tracking the progress, or lack thereof, of legislation to protect taxpayers from the growth of the Alternative Minimum Tax. The two principle points of tension were:

Conflicting approaches between the House and the Senate. The House, under the leadership of Chairman Charlie Rangel, was pressing to do something permanent. The Senate, on the other hand, made it clear that they were only interested in a one or two year “patch” to temporarily stem the growth of AMT taxpayers.
Conflicting approaches on how to offset the revenue impact of addressing the AMT, or whether to offset …

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admin2019-02-06T18:44:36+00:00October 18, 2007|

Death Tax Compromise Talks in Senate

At the Finance Committee markup last week on the Agriculture bill, Senator Jon Kyl (R-AZ) offered an amendment to make permanent changes to the estate tax.

The Kyl amendment would have created a new framework for future estate tax levies with a $5 million unified exemption (per spouse) and a two-tiered rate system: capital gains rates for estates up to $25 million and 30 percent rates for estates above $25 million.

In exchange for Senator Kyl withdrawing his amendment, Finance Committee Chairman Senator Max Baucus (D-MT) promised to hold hearings on the estate tax later this year followed by a markup of …

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admin2019-02-06T18:44:37+00:00October 11, 2007|