Posts Tagged ‘tax extenders’

Tax Action: The Quick, the Clever, and the Familiar

Treasury calls for quick Congressional action, because Congress is known to be… quick. Secretary Jack Lew asked top congressional tax writers to act now to end corporate inversions, and make such legislation retroactive to May of this year, giving Congress time to reform the corporate tax system. The Senate Finance Committee will hold a hearing […]

Nothing New Under the Sun: The Sad History of the Tax Extenders.

Nice piece by Tax Notes reporter Lindsey McPherson describing the recent history of the tax extenders. Four take-aways:  There is always last-minute drama over bringing them back, most are repeatedly extended, they are almost never paid for, and they are frequently rolled into a bigger bill. In 2004, 2006, 2008, 2010, and 2012 the subsidies […]

The Corker-Murphy Gas Tax Hike: A Good Idea Spoiled

Senators Bob Corker (R-TN) and Chris Murphy (D-CT) deserve enormous credit for having the courage to do what few of their colleagues would: Propose to pay for transportation projects by raising the gas tax.  It’s too bad they’d ruin such a sensible, straight-forward idea with a ridiculous budget gimmick. Their bill would hike the gas […]

Penalties, Subsidies, and Tax Exemption “Gooooooals”

As expected, the House passed more tax extenders. The House voted to make permanent $75.2 billion worth of tax breaks yesterday—small business expensing of up to $500,000 in qualifying equipment per year, and rules regarding basis adjustments to the stock of S corporations making charitable contributions of property. The House did not consider any proposals […]

Tax Extenders, Administration and Reform Are On Deck; State Revenues Are Up

This week: The House will vote on tax extenders. In his June policy memo to House Republicans, Majority Leader Eric Cantor notes that there will be votes on three tax extender bills this week. The bills would make permanent (1) small business expensing of up to $500,000 in qualifying equipment per year, adjusted for inflation […]

Corporations, Local Revenues, Tough Love, and Carbon

The House Ways and Means Committee marks up a bill restoring more expired tax breaks tomorrow. On the table: a measure making bonus depreciation for business investment permanent and reforming the tax treatment of some charitable giving.  Bloomberg reports that the tax panel will consider whether to permanently allow corporations to write off capital investments […]

The ACA, Extenders, and More Swiss Banks

Employers can’t “dump” their employees in ACA exchanges. Some large employers hoped to offer tax-free cash to employees to help them pay Affordable Care Act insurance premiums, a cheaper alternative to covering workers directly. But the IRS ruled against that. The penalty for doing so could cost firms $36,500-a-year per employee. If employees need help […]

Don’t Turn Over IRS Debt Collections to Private Contractors

The latest example of why bipartisanship is not necessarily good: A bill proposed by senators Chuck Schumer (D-NY) and Pat Roberts (R-KN) to require the IRS to hire private debt collectors. The last time Congress made the IRS try this, the agency lost money. It was a terrible idea then and it is a terrible idea now. Schumer and Roberts slipped […]

The Tax Extenders: Yes, Virginia, They Really Are Tax Cuts

The other day, the House Ways & Means Committee voted to cut taxes for certain businesses by $310 billion. Washington, being Washington, is now in the midst of a partisan debate over whether this is in fact a tax cut or, conversely, whether failing to cut those business levies would be a tax increase. This […]

If Congress Lets Firms Expense Investments, It Should Take Away Their Interest Deduction

Egged on by business lobbyists, congressional tax writers seem increasingly interested in allowing firms to rapidly write off the cost of their capital investments. Especially in the House, lawmakers would allow small businesses to expense the full cost of their investments in the year they are acquired, and let larger firms heavily front-load tax depreciation […]