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Home/Tag: LIFO

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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2019-02-06T18:44:36+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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2019-02-06T18:44:36+00:00October 23, 2007|

Small Business Tax Package Signed Into Law

Congress returns this week following its Memorial Day recess. As expected, the Small Business tax package was signed into law along with the Iraqi War funding just before they left. This package included a number of S corporation reforms that we have been working on for years, and represents a significant improvement to the rules governing how S corporations operate.

Key reforms included relief from the dreaded “sting tax” as well as allowing trusts that hold S corporation stock to deduct their interest expenses, something other trusts have long been allowed to do. And while we did not get everything we …

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2019-02-06T18:44:38+00:00June 5, 2007|

House Passes Small Business Tax Package — What’s the Next Step?

Real quick, the House just passed its small business tax package (H.R. 976) to accompany the proposed minimum wage increase, 360-45. This action follows a very bipartisan markup last Monday, where the tone of the hearing was a dramatic departure from what we’ve come to expect from Ways and Means meetings. That this comity occurred over a $1 billion package that included no S corporation provisions was a little disconcerting, but it is something we will have to work on.

So what’s the next step? The Senate could take up the House-passed …

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2019-02-06T18:46:06+00:00February 16, 2007|

Finance Holds Small Business Tax Relief Hearing — S CORP Submits Testimony

Today, the Chairman of the S Corporation Association Advisory Committee, James Redpath, submitted testimony on S Corp reform to the Senate Committee on Finance. The Senate Finance Committee held the hearing on small business tax relief as part of its preparation for Senate consideration of the minimum wage increase. As Jim pointed out in his testimony:

I am concerned that many of the companies that will bear the impact of this increase in labor costs are closely-held or family-owned businesses structured as Subchapter S corporations. My goal is to provide you with …

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2019-02-06T18:46:06+00:00January 10, 2007|
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