What's New: estate tax

All Posts Tagged Tag: ‘estate tax’

House Releases Tax Reform Details

0

 

 

The following is from the American Horse Council:

House Releases Tax Reform Legislation, Moves Forward with Small Business, Estate Tax Relief

The House Ways and Means Committee has shared highlights and text on historic tax reform legislation, the Tax Cuts and Jobs Act of 2017.  While highlights from the bill are outlined below, AHC is currently reviewing the fine print of the 429-page legislation, received from the tax committee shortly after 12:00 PM ET.  Today’s release initiates a long over-due effort to streamline the nation’s 70,000 page tax code.  In a move that is consistent with advocacy from the equine industry and its allies, the House bill will repeal the estate tax after six years, and reduce rates for small business, or so-called “pass through” entities.  Please see the below highlights, focusing on issues that have the most significant impact on the equine industry:

Business Provisions

  • Small Business: The bill sets a maximum tax rate of 25 percent on small business, or “pass through” entities.  Under current law, small businesses can pay federal taxes at rates as high as 39.6 percent.
  • Corporate Tax Rate: The bill lowers the corporate rate to 20 percent, down from the current 35 percent corporate tax rate.
  • Expensing: The plan will “allow business to immediately write off the full cost of new equipment.”
  • Business Interest: The plan also states that small business will be able to deduct interest on loans that allow job creators to “hire workers and increase paychecks.”
Continue Reading

GOP, Equine Industry Canter Toward Tax Reform

0

 

 

The following is from the American Horse Council:

GOP, Equine Industry Canter Toward Tax Reform

The equine industry and its partners in the agriculture and small business sectors continue to engage Congress and the Administration on key elements of the GOP’s “unified framework for tax reform,” released on September 27.  While the framework outlines broad themes for reform, AHC and its partners are focusing efforts on repeal of the estate tax, also known as the “death tax,” as a pillar for a 21st century tax code.  Below are summaries of tactics used to move the legislative process forward, and highlights from conversations with congressional and administration officials.

Congress Hears from Small Business, Agriculture
On September 12 – two weeks prior to release of the GOP framework – AHC joined nearly 150 small business groups in a coalition letter to congressional leadership urging full repeal of the estate tax.  When the government imposes estate taxes on an equine operation, surviving family partners may be forced to sell equipment and other assets to save the family business.  Signatories represent a cross-section of American business, including builders and contractors, grocers, truckers and cattlemen.  Advocates emphasized the fact that repeal of the estate tax would not only cost the treasury relatively little revenue in the short term, but ultimately increase tax revenues by $145 billion over a ten year period.  Underscoring minimal, short-term impacts on the federal budget is crucial to moving tax reform through the budget reconciliation process, which requires Congress to demonstrate that the new and improved tax code will ultimately achieve deficit reduction.

Continue Reading