pass-through - The S Corporation Association

Pass-Through Reform Issues

A couple of recent publications have highlighted the negative consequences of “corporate-only” tax reform, including a paper put out by Grant Thornton last month that focused on the challenges faced by businesses structured as S corporations, partnerships and sole proprietorships.

The paper, entitled “Business Equivalency Rate: Fairness for Pass-through Businesses” gets right to the heart of the matter in the first couple paragraphs:

Grant Thornton supports tax reform aimed at lowering effective business rates in order to promote global competitiveness for U.S. businesses. Grant Thornton believes that competitive business tax rates are critical for spurring business investment and job creation. We …

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admin2019-02-01T20:08:24+00:00June 21, 2013|

Baucus III

The tax community is still waiting for the third version of the Baucus substitute to be released. A “trial balloon” draft circulated yesterday made certain changes, but failed to address many of the sticking points holding up the overall bill.

Meanwhile, Senators Baucus and Reid spent most of yesterday negotiating with swing Republican votes — at this point, just Maine Republican Senators Olympia Snowe and Susan Collins — to identify what changes are necessary in order to gain the 59^th and 60^th votes needed. As CongressDaily reports:

The chief target appears to be $24 billion to extend higher Medicaid matching funds …

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admin2019-02-06T17:20:59+00:00June 23, 2010|

Tax Bill Offset Tally

To simplify tracking of the various tax bills under consideration by Congress, we’ve put together a chart of what’s moving and what’s being discussed, including separate tax bills on the AMT, energy production, education, housing, family tax relief, children’s health insurance, and international tax provisions.

As you can see, the total cost of the bills contemplated could exceed $1 trillion (!) over ten years. That’s a lot of offsets for Congress to generate, which suggests many of these bills will be delayed and/or scrapped as Congress weighs the benefits of action …

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admin2019-02-06T18:44:38+00:00June 11, 2007|

Illinois Governor Proposes Gross Receipts Tax!

S Corp Member Alert! Governor Blagojevich proposed last month to replace the Illinois state corporate income tax with a gross receipts tax (GRT). Under the current proposal, the state’s current 4.8% corporate income tax rate would be phased out over four years and the new GRT would be imposed on all revenues realized by IL businesses from the sale of good and services – .85% for goods and 1.95% for services. The change will increase projected annual revenue collections more than four-fold and has been characterized by the non-partisan Tax Foundation as the largest state tax increase this decade.

A massive …

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admin2019-02-06T18:46:05+00:00April 12, 2007|

Proposed Tax Increase on S Corp Exporters!

Just before breaking for the November elections, the Senate Finance and House Ways and Means Committees introduced their tax technical corrections bills (H.R. 6264 & S. 4026) to fix errors and ambiguities in the tax code. The bills are open to review and comment through October 31st, with the expectation that they will be adopted by Congress and sent to the President during the final weeks of this Congress.

Alert!

One provision included in both bills would increase from 15 percent to 35 percent the tax rate on qualified export income for small business exporters! This provision is not a technical …

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admin2019-02-06T18:47:19+00:00October 12, 2006|