This week the House Committee on Small Business held a hearing to consider reforms that would promote equality and growth for S corporations. Rick Klahsen, a member of the S Corporation Association’s Board of Advisors testified on our behalf.
Rick’s testimony reviewed the dramatic growth of S corporations over the last half-century and identified critical reforms Congress should consider to improve the S corporation rules and level the playing field …
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Under the category of “We Told You So,” yesterday’s CongressDaily includes an analysis by Martin Vaughn that makes a point similar to the theme of our last Wire – that the debate over how to tax hedge funds is just the beginning of the debate over how to define and tax all sorts of income from ownership. Here’s how Martin sees it:
Forget Blackstone. Many smart people on both sides of the argument over whether to raise taxes on private equity and hedge fund managers’ profits see this as a proxy debate for whether the tax code should …
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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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It is time to start a tally of how many times Congress spends revenues raised from closing the tax gap.
It’s an annual tradition. Each year, Congress picks out its favorite revenue raiser and then uses that revenue over and over again to pay for new spending or tax relief. Past contenders include overturning the Schmidt Baking decision, codification of the IRS’s economic substance test, SILOs, LILOs, COLI, etc. For 2007, the tax gap is the leading contender, and it’s already being used up.
As CongressDaily reported last week, the budget includes more than twenty “reserve funds” that allow for additional spending …
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While the 109th Congress adjourned last weekend, the Democratic Leadership in the House has been busy this week planning for next year. Speaker-designate Nancy Pelosi has announced nominees for key committees in the House including, of most interest to S-CORP members, the tax-writing Ways and Means Committee.
One of S-CORP’s priorities for 2007 will be to establish constituent relationships with these new committee members, to help further our legislative goals of modernizing S corp rules and blocking unwarranted tax increases. We would very much appreciate your contacting us (at nhawley@vennstrategies.com) if you have a presence in these districts:
B7 Rep. Earl …
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