tax increase - The S Corporation Association

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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admin2019-02-06T18:44:36+00:00October 23, 2007|

Treasury Conference on Corporate Tax Policy

Your S-Corp Association friends attended the Treasury conference on corporate tax policy last week, rubbing shoulders with the Secretary of the Treasury, Alan Greenspan, and others. As expected, the bulk of the speakers focused on tax issues of most concern to Fortune 500 companies – the corporate rate, the treatment of foreign earnings, etc. There’s growing concern that our corporate tax rate is out of whack with the rest of the developed world and this forum served to highlight the benefits of a corporate tax rate cut.

One of the invited speakers, however, S-Corp ally John Satagaj from the Small Business …

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admin2019-02-06T18:44:37+00:00August 1, 2007|

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|

AMT Legislative Forecast

While Congress is considering numerous changes to the Tax Code, the 800 pound gorilla in tax policy these days is the projected growth of the Alternative Minimum Tax (AMT) and what exactly Congress plans to do about it. A couple of news items this week do an excellent job of setting the table for what might happen.

According to the New York Times,

…

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admin2019-02-06T18:46:05+00:00April 13, 2007|

Tax Hikes under the Guise of Tax Relief?

Here’s more on what the House might be considering for its next tax bill this spring. As you’ll recall, last week they announced they would put forward a plan to address — that is, slow the growth of — the Alternative Minimum Tax among upper income taxpayers. This plan would be permanent, and would likely be offset with targeted tax increases elsewhere.

What would these targeted tax increases look like?

According to several sources, the Ways and Means Committee plans to lower the income thresholds applying to the 33 and 35 percent tax brackets. For married taxpayers filing jointly in 2006, the …

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admin2019-02-06T18:46:05+00:00March 13, 2007|