payroll tax - The S Corporation Association

Stimulus Introduced in House

The House Leadership released an outline of its proposed stimulus package yesterday with few surprises. The total package is $825 billion with $550 billion in new spending and $275 billion in tax relief. On the spending side, the package includes $550 billion in spending, and $275 billion for tax cuts. Some of the tax highlights include:

Making Work Pay Credit – offsets payroll taxes on the first $8,100 of earnings
Expanded Earned Income Tax Credit
Bonus depreciation
A five year carry-back of net operating losses (excluding companies receiving TARP benefits, Fannie Mae, Freddie Mac)
Extension of increased small business expensing
Tax-exempt bond provisions to help state …

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admin2019-02-06T17:22:35+00:00January 16, 2009|

Bailout and Extenders Combined

As equity markets continue their wild swings while the credit markets signal distress, Congress will make another run at the financial sector bailout this evening.

This time the Senate will try. The new package retains the core of the bailout — authority for Treasury to purchase hundreds of billions of dollars worth of troubled mortgages and other assets — while adding an increase in FDIC insurance levels from $100,000 to $250,000, hurricane relief, and the Senate-passed tax extender package.

The Senate will take up the package this evening, voting around 8:00 pm Eastern Time. If it passes, the House will take it …

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admin2019-02-06T18:06:06+00:00October 1, 2008|

S-Corp Supports Small Business Tax Modernization Act

More good news for S Corps! Congresswoman Nydia VelC!zquez, Chairwoman of the House Small Business Committee, introduced legislation last week “the Small Business Tax Modernization Act of 2008” that includes many provisions with the potential to benefit the S corporation community.

Of particular interest to S corporations, the bill would allow nonresident aliens to invest in S corporations. This restriction, developed half a century ago, prohibits S corporations from partnering with investors in other countries. Lifting this restriction would enhance an S corporation’s ability to access new sources of capital, which will in turn help generate new investment and job creation …

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admin2019-02-06T18:06:07+00:00July 29, 2008|

S Corporations and the Estate Tax

With a large fraction of the tax code expiring in the next couple of years, the big surprise may be the growing consensus for compromise over the estate tax. The estate tax is scheduled to go away in 2011 followed by its return in 2011 with a top rate of 55 percent and a $1 million exemption per spouse.

How did the estate tax, perhaps the most contentious and divisive of taxes, get to the head of the line of possible compromises? A couple of factors appear to be in play.

For legislators who support full repeal, the prospect of allowing the …

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admin2019-02-06T18:06:08+00:00June 26, 2008|

Busy Week in Washington

Lots of activity on tax policy with implications for S corporations this week.

On Monday, the White House held a forum on the expiring tax relief and its potential to hurt the economy if it is not extended. In preparation for the forum, Treasury issued a collection of issue summaries that focus on the importance of keeping tax rates low, including the top two individual tax rates most in danger of going up in the next Congress.

As friends of S-Corp know, the debate over the …

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admin2019-02-06T18:06:08+00:00June 5, 2008|