Tax Policy - The S Corporation Association

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|

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|

House Passes Marginal Tax Increase

Foreshadowing things to come, the House on Thursday adopted legislation to increase Veterans education benfits by raising marginal tax rates on individuals – including S corporation shareholders – making $500,000 a year or more. As Congress Daily reported:

“The House, as one portion of a three-part war funding supplemental spending package, approved a provision that would pay for a four-year college degree at any public university for veterans of the wars in Iraq and Afghanistan for at least three years. To pay for the increase — $52 billion over 10 years — the House Thursday voted to impose a 0.47 percent …

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admin2019-02-06T18:06:08+00:00May 16, 2008|

Small Business Week 2008

Washington loves small businesses, at least in its rhetoric.B April 20-26^th was Small Business Week.B The annual event is devoted to recognizing the “determination and ingenuity of America’s workers and entrepreneurs who play a vital role in building a more prosperous future for our country.”

Since 1963, every President has declared National Small Business Week to formally recognize the important role of small businesses in America.

In a discussion with small business owners, President Bush argued that “every day ought to be Small Business Day in America” and that government’s role should be “to create an …

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admin2019-02-06T18:06:09+00:00April 30, 2008|

Senator Clinton’s Tax Policies – Bad for S Corporations

Recently, we reviewed Senator Obama’s tax policies and how they might impact S corporations should he become President. What about Senator Clinton? If she becomes President, how would her tax policies impact small and closely-held businesses?

In general, Senator Clinton has opposed the rate relief and other tax reductions enacted over the past eight years. As she told one audience:

I want to restore the tax rates we had in the ’90s. That means raising taxes on corporations and wealthy individuals. I want to keep the middle-class tax cuts, and I want to start making changes that will save us money, save …

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admin2019-02-06T18:43:57+00:00March 31, 2008|