tax reform - The S Corporation Association

More Details — and More Pushing — on the Push for Tax Reform

Last week, Politico reported more details on the pending Administration tax reform plan. As Mike Allen reports:

Treasury Secretary Timothy Geithner plans to ignite the debate by unveiling a white paper that advocates lowering the top corporate tax rate from the current 35 percent to less than 30 percent and as low as 26 percent, according to aides. The proposal is likely to fall between 26 percent and 28 percent.

To pay for that, the proposal will call for closing loopholes and slicing exemptions. The two main ones are a tax deduction for domestic manufacturing and accelerated depreciation for capital equipment.

And:

Agreeing …

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admin2019-02-01T20:48:05+00:00May 10, 2011|

Administration to Propose Taxing More Employers as C-Corporations

More chatter about the pending tax reform proposal being drafted by the Obama Treasury Department and its plan to force more pass-through businesses to pay taxes as C corporations. Reuters reported earlier this week:

The Obama administration is considering a plan to force more businesses to pay the corporate income tax, an industry group said, in an overhaul package that could be unveiled as early as this month. Under the proposal, entities with more than $50 million in gross receipts would pay the corporate income tax, instead of the individual income tax they now pay. Partnerships like law firms …

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admin2019-02-01T20:48:05+00:00May 4, 2011|

Treasury to Propose Corporate Tax Reform Plan

Appearing before a subcommittee of the Senate Appropriations Committee to discuss FY 2012 Treasury Department funding, Secretary Geithner said the Administration is ready to get the ball rolling on corporate tax reform, telling Senators, “I’m actually quite optimistic we’re going to be able to start that process with a very strong pro-investment, pro-growth, pro-competitiveness proposal.” Below is the video of his testimony (Discussion of tax reform can be found at 25:28).

There were few specifics on when, or in what form the proposal would take, but the …

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admin2019-02-01T20:48:06+00:00April 6, 2011|

The “Ideal” Way to Tax Businesses

The story on tax reform continues to progress. Last week, the Senate Finance Committee held another in its series of hearings on the various aspects of reform. This hearing, entitled “How do Complexity, Uncertainty, and Other Factors Impact Responses to Tax Incentives?” brought forth witnesses Dr. Robert Carroll, Dr. Eric Toder, and Dr. Raj Chetty.

The internet feed of the hearing was playing in the background on our computers last Wednesday when this exchange took place:

Senator Snowe: Dr. Carrol, could you give us some comments on [the corporate-only approach to tax reform because that is a problem, requiring flow-throughs to …

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admin2019-02-01T20:48:06+00:00April 5, 2011|

Treasury Targets S Corporations, Flow-Throughs

A Bloomberg article from Friday morning has been flying around tax policy circles here in D.C. and elsewhere. From the article:

The Obama administration is seeking to widen the scope of its proposal to overhaul the corporate tax code, urging Congress to also change rules that allow some businesses to take advantage of tax laws governing individuals.

The article cites testimony by Secretary of the Treasury Tim Geithner earlier this year in which he advocated “revisiting” long-standing rules allowing businesses to choose to be taxed as S corporations or partnerships. According to Geithner:

“Congress has to revisit this basic question about whether it …

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admin2019-02-01T20:48:06+00:00February 28, 2011|