surtax - The S Corporation Association

Taxpayer Expectations and the Rangel Surtax

We have had a chance to digest a bit more of the Rangel bill introduced last week.

There was a lot to digest. Repealing section 199, LIFO, and IC-DISC, while extending the depreciation period for intangibles will all adversely impact our members to one degree or another. The fact that these tax increases are being used to offset a rate cut for C corporations doesn’t help matters.

Focusing on the individual side, the bill would substitute a new four-percent surtax on individuals and businesses earning more than $150,000 in order to offset the cost of repealing the individual Alternative Minimum Tax (AMT).

Whether …

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admin2019-02-06T18:43:59+00:00October 30, 2007|

More Details on the Rangel Tax Bill

At a members briefing this evening, Ways and Means Chairman Charlie Rangel outlined his “Mother of All Tax Bills” to the Committee membership. In essence, he outlined three separate bills that he will introduce in one package:

– A bill to repeal the individual AMT and provide tax benefits for low income families; A bill to extend for one year a group of tax provisions scheduled to expire at the end of 2007, including the temporary AMT “patch”; and
– A bill to cut the corporate tax rate down to 30.5 percent.

As S-Corp readers know, the tax benefits from these three …

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admin2019-02-06T18:44:36+00:00October 24, 2007|

AMT and Corporate Tax Rates Together? Watch Out

As we have previously reported, Chairman Charlie Rangel has a deep interest in passing a permanent “fix” to the Alternative Minimum Tax. Meanwhile, Treasury Secretary Paulson has kicked-off efforts to cut the corporate tax rate in order to make our corporations more competitive on the world stage.

Now the word on the Hill is that these two unrelated agendas may collide in the next week or two at a Ways and Means Committee hearing, and possibly at the end of the year as a massive tax reform package.

As BNA reported last week (subscription required), Chairman …

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admin2019-02-06T18:44:37+00:00September 25, 2007|

Congress Returns

Congress came back from its August break this week and is picking up right where it left off, struggling with the question of what to do with the Alternative Minimum Tax and examining how to appropriately tax the carried interest earned by hedge fund managers and other general partners.

These questions are connected, obviously, in that addressing the AMT will be very expensive while raising the tax rates on carried interest would presumably raise lots of revenue. That’s one reason why both the Ways and Means and …

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admin2019-02-06T18:44:37+00:00September 7, 2007|

Lessons from the Failed Senate Energy Tax Package

As reported in the press, last week the Senate failed to add a sizable energy tax package to its comprehensive energy bill prior to adoption.

The Senate voted 57-36 not to end debate (60 votes are needed) on the tax package that was offered as an amendment to the broader energy bill. This vote fell short despite the fact the Finance Committee reported the package out by a bipartisan vote of 15-5 vote just a few days earlier.

While the package itself has little directly affecting S corporations, there are a couple lessons to draw from the challenge Senate leadership is having …

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admin2019-02-06T18:44:37+00:00June 29, 2007|