The Washington Wire - The S Corporation Association

Arrington Talks 199A and Chamber Hits Hill

Couple of items worth highlighting on the Section 199A front. First, House Budget Committee Chair Jodey Arrington (R-TX) joined CNBC’s Squawk Box yesterday to talk fiscal cliff and the ever-growing budget deficit. Asked by host Andrew Ross Sorkin whether going to a corporate tax rate of 15 percent “is the right answer,” Arrington replied:

I’m more interested in locking in permanent small business tax breaks that will expire at the end of next year, like the 20-percent 199A deduction, where Kamala Harris, in her tax proposal, would allow that to expire. When she says she won’t allow taxes to go …

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admin2024-10-10T16:46:45+00:00October 10, 2024|

Are JCT’s Tax Burden Tables Flawed?

One of the more bizarre tax policy moments this year was the Chairman of the Senate Finance Committee calling the distributional tables produced by the Joint Committee on Taxation (JCT) “junk math.”

Why bizarre? Well, for starters, Wyden is the Chairman of the JCT. Those estimates were being produced under his leadership, in preparation for a hearing he chaired. Far more importantly, there is nothing “junk” about them. The JCT has been producing similar tables using the same methodology for decades, as has Treasury, the Tax Policy Center, and others.

So why attack his own staff? To …

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admin2024-10-09T18:02:55+00:00October 9, 2024|

Congressman Kustoff Hosts 199A Roundtable in Memphis

Members of the Main Street Employers Coalition convened in Memphis, Tennessee yesterday for a roundtable event hosted by Congressman David Kustoff. It was the latest of many “Tax Teams” events we’ve held in recent months and is part of Ways & Means Chairman Jason Smith’s plan to solicit input from stakeholders as lawmakers work to avert the 2025 fiscal cliff.

The group in attendance spanned all corners of the Main Street business community, from wine and spirits wholesalers to contractors to restaurant and barbershop owners. As with previous roundtables, participants focused on the Section 199A deduction and the disastrous consequences of …

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admin2024-10-04T15:17:25+00:00October 4, 2024|

CTA Pressure Ramps Up

As a followup to yesterday’s CTA Watch newsletter we wanted to highlight two notable items, starting with a great thread by our friend Liam Donovan from the Associated Builders and Contractors. Liam breaks down the history of the CTA, the statute’s underlying flaws, and where things currently stand:

Among his other points, Liam does an excellent job of explaining just how confounding the Senate’s failure to act is here:

So if the dysfunctional, do-nothing House passed a CTA relief bill with the support of 99.8% of the chamber almost a year …

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admin2024-10-03T17:51:02+00:00October 3, 2024|

CTA Update | October 2, 2024

Notable Developments

Weak compliance numbers heighten concern
Appeals court hears oral arguments
Full court press in Ohio
CTA is not a tax enforcement exercise

* * *

Regulatory Update

New filing data from FinCEN is out and it paints a bleak picture when it comes to nationwide compliance rates. As the linked data shows, the vast majority of businesses required to file under the CTA have not done so – despite just three months to go before the year-end filing deadline – meaning millions of small business owners and their employees will become de facto felons come that start of 2025.

Also worth …

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admin2024-10-02T18:37:19+00:00October 2, 2024|