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.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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