BLOG

Chairman Paul Ryan Speaks about Timing of Upcoming Tax Reform and Extenders

By admin • 14 May 2015 • Uncategorized

120913_ryan_ap_605

Paul Ryan spoke several weeks ago regarding his agenda for dealing with WOTC and other expired or expiring tax provisions as the year moves ahead.

According the Chairman, “Extenders can either be part of a limited tax reform package this summer, or if we just can’t come together with the Administration on that, then we immediately move to extenders and do those as early in the fall as possible so we can give people time to prepare.”

Ryan went further, noting his conviction that passing permanent extensions that have bi-partisan support paves the way for tax reform, and he may move additional permanent extenders bills in the coming months.

Ryan’s comments are noteworthy as they clearly demonstrate the powerful impact the WOTC program can have on the United States economy should it attain bi-partisan support. Offering even more hope for business owners is the additional permanent extender bills that are feasible. 

The WOTC Coalition offered their assessment:

Revenue measures must originate in the House and Ryan intends to take the lead in getting Ways and Means to produce a first cut at tax reform, by which he means reforming corporate taxes and taxation of pass-through entities such as partnerships and Schedule C corporations.  The recently agreed Joint Budget Resolution instructs Ways and Means to produce a tax reform bill, and the House has already passed the resolution—after Senate passage, the resolution bill be binding upon both bodies and the way will be open for bringing a tax reform bill to the floor without crippling points of order.

The WOTC Coalition also highlighted just some of the obstacles facing the tax reform. While they recognized the Chairman is making his best efforts, they also noted the following challenges:

· International taxation

Questions regarding what happens to the revenue from taxing accumulated foreign earnings of US corporations were also pointed out by the WOTC coalition.  There is a clear divide between the Administration and the Republicans would like to spend the additional revenue from taxing these reserves. The Administration would like to focus on infrastructure and the rest used to lower the corporate tax rate, whereas Republicans want the additional revenue to be used entirely to lower the tax rate.  With this in mind, the Administration lowers the corporate tax rate to 28% whereas Chairman Ryan’s goal is 25%. Questions remain if this can be reconciled.

· Pass-Through Entity Taxation

Another hurdle to be overcome is taxation of pass-through entities, which the Administration doesn’t want to include the taxation of pass-through entities in corporate tax reform because this income is taxed at individual rates and the President doesn’t support individual tax reform unless taxes on upper-income tax payers are increased. Chairman Ryan, on the other hand, is working hard to find a way to cover taxation of pass-through income in order to treat all business income the same.

It is clear that the current state of affairs in our country demands more work opportunities for ALL citizens now more than ever. While the WOTC coalition has certainly pointed out some of the obstacles standing in the way of a permanent WOTC program, there is still a great deal business owners, concerned citizens and job seeker can do to facilitate overcoming these obstacles. An upcoming election is no excuse to remove a critical program that can help drive our country in a better direction for both the working class and business owners.

We strongly encourage you to show your Congressmen and women that you support WOTC and the benefit it provides to employers, employees, and the American economy. Without your support and action WOTC and all of its benefits for employers and employees will disappear.

In the past letter writing campaigns have driven considerable change and acceptance of the WOTC program. In today’s digital world, handwritten letters stick out and carry more impact than ever before. If you’ve never written a letter to Congress the WOTC Coalition has provided a great template regarding this issue for your reference here. You can also locate the fax numbers for key Congress members here.  Let your voice be heard!

SHARE Tweet about this on TwitterShare on FacebookShare on Google+Email this to someone

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

GET STARTED

 Please add me to the TaxBreak mailing list

Contact a TaxBreak consultant today for a free tax credit analysis
Get Started Now! 1.800.992.0163

CONTACT US
Live Chat