Treasury - The S Corporation Association

Honey, I Shrunk the Small Business Sector

Earlier this month, the Department of the Treasury released a report to redefine “small business.” As Bloomberg reports:

Using the proposed definition, 20 million small business owners reported $376 billion in net business income for 2007, according to a Treasury analysis of returns that year.

Under a second, narrower definition in which profit or loss from a business represented at least 25 percent of a filer’s income, researchers estimated there were 9.4 million small business owners with $335 billion in reported income for 2007.

The previous methodology counted 34.7 million filers reporting $662 billion in income in 2007. Under the new definitions, …

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admin2019-02-01T20:24:45+00:00August 24, 2011|

The Gang Falls Short

With less than two weeks to go before the Treasury-announced August 2^nd deadline to raise the debt ceiling, members of Congress are desperate for some sort of plan that will break the current stalemate over what type of deficit reduction should accompany the ceiling increase. So are the financial markets, to judge by their reaction.

This desperation perhaps explains the energy with which members of both parties received the “Gang of Six” plan released Tuesday.

We caution our members not to get too excited. While there are several very positive aspects of the Gang’s plan, this proposal will not be ready to …

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admin2019-02-01T20:48:05+00:00July 21, 2011|

Administration’s Corporate-Only Plan Waiting Behind Debt Ceiling

The Administration appears to be holding back their Corporate-only tax reform plan until budget negotiators can settle on a deal to raise the debt ceiling. The Treasury Secretary is counting on congressional leaders to reach a long-term deal by the current August 2^nd deadline, and then intends to move onto his corporate-only plan prior to the 2012 elections. At a speaking event in New York earlier this week he previewed the essential pitch:

“It’s a very hard thing to do because it will change the relative effective tax rates for different companies, different industries, but it’s an essential thing to do. …

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admin2019-02-01T20:48:05+00:00May 20, 2011|

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|