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S-CORP Clips | October 1-10

A compilation of the business tax related stories that caught our eye


Administration on Tax Reform

The President’s economic advisors have been unusually busy in recent weeks.  National Economic Council Director Jeffrey Zients was firm in his conviction that tax reform could get done in the new Congress, citing the “remarkably overlapping” approaches of Obama’s plan and the Camp draft.

It is true there are some common themes in the Camp and Administration proposals, but also there are major – and fatal – differences as well, including:

  • The Camp Draft is budget neutral while the Administration’s plan would raise revenue;
  • The Camp

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2014-10-10T19:13:33+00:00October 10, 2014|

S Corp Payroll Tax Hike Resurfaces

Last week, Senate Democrats released a paper highlighting a dozen tax increases they would like to use to offset spending cuts in the current budget negotiations. As Politico reported:

Tax expenditures topping the list include the deduction corporations take when they move operations overseas and the carried interest loophole, which allows private equity and some other investment advisers to pay the lower capital gains tax rate on some of their income.

Also on the list is our old nemesis, the S corporation payroll tax hike. Labeled the Edwards Loophole by Republicans and the Gingrich Loophole by Democrats, the issue is

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2019-02-01T20:19:39+00:00November 14, 2013|

Battle Lines on Tax Policy

The President rolled out his latest deficit reduction outline yesterday. As expected, it included several tax recommendations. In sum, the President is calling for an additional $1.5 trillion in tax collections over the next decade, including:

  • Expire Bush Tax Cuts on High Income Earners ($800 billion)
  • Cap Itemized Deductions & Exemptions at 28 percent ($400 billion)
  • Various Loophole Closers ($300 billion)

There are a number of challenges with the list. First, allowing tax provisions already set to expire to, well, expire, doesn’t raise any revenue. It’s already in current law. That $800 billion in savings doesn’t exist.

Second, the President already proposed to use the

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2019-02-01T20:24:45+00:00September 20, 2011|

Tax Notes: Make S-Corps Pay C-Corp Taxes

The drumbeat to impose the double corporate tax on large pass-through businesses grows louder. This time, it’s Martin Sullivan at Tax Notes arguing that larger firms should all be subject to corporate-level taxes. At least that’s the headline. Read the actual article, however, and our impression is a tax-writer at war with his conclusions. Try these lines:

  • “true tax reform would completely eliminate the double taxation of corporate income.”
  • “After all, the corporate tax is our worst tax.”
  • “What should be the dividing line between businesses subject to corporate tax and those that should be exempt? That’s not an easy question

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2019-02-01T20:48:05+00:00June 7, 2011|