Congress has allowed a number of tax credits to expire before renewing them every two years, in a process known as the “tax extenders.”
Some of these tax breaks have been renewed regularly for over 30 years. After some wrangling in the House, the Ways and Means Committee voted to make six expired tax breaks permanent April 29, according to Market Watch. This move would add $310 billion to the deficit over the next 10 years if approved by the Senate, though analysts explained that this is unlikely to happen before the November elections.
In an interesting role-reversal, Democrats are arguing that this move is fiscally irresponsible, as it is not offset by spending cuts or tax increases, Bloomberg explained. The left also feels that it is unfair that businesses be given tax benefits that aren’t offset when Republicans have maintained that extending unemployment benefits must be covered.
“To say that Republican action today is hypocritical is a serious understatement,” said Representative Sander Levin of Michigan, the top Democrat on the Ways and Means Committee, according to the news source.
Ways and Means Committee Chairman Dave Cam, R-Mich., explained that they started with bills that have had bipartisan sponsors in the past, but he hopes to consider other expired provisions later this year, according to Bloomberg. He declined to say which he wants to make permanent, but the largest are those for bonus depreciation for capital expenses and the right to deduct state sales taxes. Camp plans to retire from Congress when his term ends.
Among the bills that the panel voted to make permanent were the research credit, a rule that allows small businesses to write off capital expenses, the active financing exception, and the look-through rule, the news source reported.
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
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