Close
Close

Congressional tax writers continue work as Memorial Day recess approaches

RFP

Tax Hot Topics - Congressional tax writers continue work as Memorial Day recess approachesMembers of Congress testified before the House Ways and Means Committee Subcommittee on Tax Policy on May 12, offering the subcommittee proposed tax legislation, ranging from provisions benefitting lower-income individuals, to pass-through businesses, to large companies.

Thirty five members of Congress offered their thoughts in three-minute increments to subcommittee chair, Charles Boustany, R-La., and ranking member Richard Neal, D-Mass. Rep. Vern Buchanan, R-Fla., testified that his bill, the Main Street Fairness Act, would ensure that pass-through businesses would not be taxed at a higher rate than corporations. “My bill simply says, lower those tax rates to the same, nothing higher than, corporate rates going forward,” Buchanan said.

The diversity of the members testifying, who serve on various committees representing different districts, reflected myriad policies proposed, many of which are targeted to benefit the members’ constituencies. While a number of the proposals are unlikely to be considered by the full Ways and Means Committee, the hearing does reflect the committee’s willingness to consider members’ ideas.

Meanwhile, in Congress’s upper house, the Senate Finance Committee announced on May 11 that it would hold a hearing on May 17 regarding a proposal by Chairman Orrin Hatch, R-Utah, on corporate integration. The hearing is expected to be the first of at least two hearings on the subject. While full details on the integration plan are scant, the proposal is expected to include a deduction for dividends paid, with a nonrefundable withholding tax of 35% on both interest and dividends. “If done right, corporate integration promises to eliminate the distortive double taxation of corporate earnings and further modernize the tax code, including simplification of the system and an end to some of the gamesmanship,” Hatch said.

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.