Eversheds Sutherland Tax Reform Law Blog
content top

Potential Impact of the Tax Reform Act of 2014 on Insurance Companies

On February 26, House Ways and Means Committee Chairman Dave Camp (R-Mich.) released a “Discussion Draft” of the Tax Reform Act of 2014, which sets forth his much-anticipated tax reform proposals.  Of note, the Discussion Draft aims to transition the corporate tax rate to a flat 25% rate beginning in 2019 and to repeal the corporate alternative minimum tax.  However, as part of the...

Will the Capital Gains Preference Survive Reform?

Some tax reform advocates may be dangling a new carrot to draw in support – equalizing the tax rate between ordinary income and capital gains and dividend income.  A September 13 Wall Street Journal editorial by former Club for Growth chairman Stephen Moore describes a potential tax reform deal that would equalize individual income tax rates on ordinary income, capital gains and...

House Republicans Work on Tax Reform Bill; Democrats Not Invited

Yesterday, Republicans on the House Ways and Means Committee held the first of several meetings scheduled for this month to produce a tax reform bill.  These meetings are closed-door affairs for Republican Committee members only. At these meetings, Committee Republicans hope to rewrite the discussion drafts released by Chairman Dave Camp (R-Mich.) earlier this year and emerge with a...

The Other Side of Capital Gains Reform

Many proposals for comprehensive tax reform have targeted the favorable capital gains rate as a way to increase tax revenues or offset tax rate decreases in other areas.  However, at least one Congressman is going in the other direction.  Representative Chuck Fleischmann (R-Tenn.) introduced the “Growing Jobs Through Capital Act of 2013” (H.R. 2885), which would eliminate the tax on...

Small Business Groups Release Study on Effective Rates

The National Federation of Independent Business (NFIB) and the S Corporation Association (S-CORP) released a study showing that S corporations average higher effective tax rates than other business entities.  According to the study, S corporations and partnerships have the highest average effective tax rates, at 31.6% and 29.4%, respectively, with C corporations (17.8%) and non-farm...

House Ways & Means Determined to Pass Tax Reform This Year – Even Without Democrat Votes

Republicans on the House Ways & Means Committee plan to move a tax reform bill out of the Committee before the end of the year, even if none of the Democrats on the Committee vote for it. An article in The Hill quoted several members who appeared skeptical of a bipartisan measure coming out of the Committee. Rep. Kevin Brady (R-TX) said he’d “be satisfied if the House passed its...

House Ways and Means Committee Holds Hearing on Unified Pass-through Regime

The House of Representatives Ways and Means Committee held a hearing May 15th on a proposal to alter the taxation of small business and pass-through entities, such as partnerships and S corps. In March, Dave Camp, the chairman of Ways and Means, released a draft proposal with two alternatives in changing the tax treatment of small businesses. While one alternative, Option 1, consisted...