Long-time S-Corp ally George Callas is out with a great piece on the history of the NIIT and how the effort to expand the tax to active business income is nothing more than a money grab built on revisionist history. Congress exempted active business income from the NIIT on purpose, and for good reason.

This is a big deal for S corporations. As George explains:

Despite this extensive effort by both Congress and Treasury to limit the NII tax to taxpayers who “lived off investments,” the proponents of higher taxes are now characterizing the exemption of active business income as …

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Lots to report on the SALT Parity front. As you can see from our map, the number of states adopting our PTET elections is up to 38, with only four to go.  It’s not all good news, however, as some states are considering backsliding on the policy while others are using the PTET regime to offset significant new taxes.  Here’s the rundown.

Back in March we flagged an emerging threat to New York’s Parity regime, noting that their budget proposals included PTET “haircuts” that would siphon money away from New York’s …

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When tax writers approach the next round of tax reform, number one on their list should be to eliminate double taxation. Nothing contributes more to economic distortions than taxing the same income two (or more) times.  Embracing a “single tax system,” on the other hand, would eliminate those distortions and encourage more investment and job creation.

The brouhaha over the new Section 68 haircut on itemized deductions suggests we’ve got a long way to go on that front.  Here’s how CNBC describes the problem:

The deduction cap is imposed on trusts and estates, the experts said, which was unexpected. Even …

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