corporate-only - The S Corporation Association

S-CORP Opposes Senate Sequestration Bill

The Senate is voting today on legislation to swap the sequester spending cuts with a package evenly divided between other spending cuts and targeted tax hikes.

The core tax hike in this package is our old friend - the Buffett Tax. We’ve previously pointed out the serious flaws in both the premise and the execution of the Buffett Tax. The provision contained in S. 388 suffers from all these flaws.

How would it work?

In this case, the bill would impose a new, minimum tax of 30 percent on taxpayers earning $5 million or more. The minimum tax would begin to phase-in once …

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admin2019-02-01T20:08:25+00:00February 28, 2013|

Ways and Means Hearing

S-corporation taxation took center stage on the Hill last week.

Carrying the S-Corp flag before the House Ways and Means Committee was Association Advisor Tom Nichols of Meissner Tierney Fisher & Nichols S.C. Tom had been invited to represent the S Corporation Association and testify at a hearing entitled “Tax Treatment of Closely-Held Businesses in the Context of Tax Reform” along with five other witnesses representing other trade groups and academia. Tom’s testimony made clear to the tax writers what we’d like to see when they pursue tax reform:

“As much as possible, …

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admin2019-02-01T20:21:28+00:00March 13, 2012|

Administration Offers Corporate Tax Reform

The Administration released its outline for “business” tax reform today. Described by its authors as more than a set of principles but less than a fully-realized plan, the 22-page joint Treasury-White House release raises more questions for us than it answers.

Core to the plan is a reduction in the top corporate tax rate from 35 to 28 percent. Pass-through businesses would not benefit from the rate reduction. Manufacturing businesses would see a further reduction down to 25 percent through the use of a manufacturing deduction. Advanced manufacturing would receive a yet more generous deduction.

To offset the cost of the lower …

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admin2019-02-01T20:21:28+00:00February 22, 2012|

Pass-Through Businesses Get Their Day

On the heels of the release of the Ways and Means Committee’s discussion draft to reform the international tax code and drop the corporate rate to 25 percent, a Subcommittee of the House Committee on Small Business held a hearing Thursday morning to discuss how and why the business tax reform needs to include pass-through businesses.

Entitled “Pro-Growth Tax Policy: Why Small Businesses Need Individual Tax Reform,” the hearing was rife with good testimony. Tax Notes had a nice write-up on it this morning:

“Flow-through businesses would lose the benefit of widely used and long-standing provisions, such as accelerated depreciation and …

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admin2019-02-01T20:24:44+00:00November 4, 2011|

More Talk on Corporate-Only Reform

Congressional Quarterly has a really good article on the state of tax reform discussions on the Hill, and the Super Committee in particular. Here’s a few of the key paragraphs:

Advocates of a corporate overhaul argue that a lower corporate tax rate would help spur economic growth by improving the competitive position of the United States, which now has the second-highest corporate tax rate in the world, much to the chagrin of lawmakers in both parties. Moreover, with the unemployment rate hovering above 9 percent, lawmakers are eager to have the deficit panel take steps to boost the sluggish economy, …

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admin2019-02-01T20:24:44+00:00October 14, 2011|