house - The S Corporation Association

The “Ideal” Way to Tax Businesses

The story on tax reform continues to progress. Last week, the Senate Finance Committee held another in its series of hearings on the various aspects of reform. This hearing, entitled “How do Complexity, Uncertainty, and Other Factors Impact Responses to Tax Incentives?” brought forth witnesses Dr. Robert Carroll, Dr. Eric Toder, and Dr. Raj Chetty.

The internet feed of the hearing was playing in the background on our computers last Wednesday when this exchange took place:

Senator Snowe: Dr. Carrol, could you give us some comments on [the corporate-only approach to tax reform because that is a problem, requiring flow-throughs to …

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admin2019-02-01T20:48:06+00:00April 5, 2011|

Rate Debate is All But Over

Another interesting week in our nation’s capital. The big news is the tax deal struck between Congressional Republicans and the White House. We expect this deal to pass, with few changes, either next week or when Congress returns the first couple weeks in January. Here are some useful summaries and the legislative text if you’re interested:

The Senate is going to take the package up on Monday and should pass it Tuesday night or Wednesday morning. It then goes to the House, where it faces an angry liberal caucus and …

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admin2019-02-04T15:47:03+00:00December 10, 2010|

Latest on Rate Debate

Congress and the Administration continue to move through the three-step dance necessary to come to closure on the debate over extending expiring tax provisions.

Step 1 took place two weeks ago when the Democratic and Republican leadership met with President Obama. The meeting didn’t result in any agreements, but it did move the ball forward when both sides agreed to appoint six negotiators to begin talks — Treasury Secretary Geithner, OMB Director Lew, House members Van Hollen (D-MD) and Camp (R-MI), and Senators Baucus (D-MT) and Kyl (R-AZ).

Those negotiators have been meeting regularly and any agreement they reach would act as …

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admin2019-02-04T15:47:03+00:00December 6, 2010|

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|

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|