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Washington Watch - November 24, 2010
Editor's Note: Leadership Races Complete
As Congress prepares for the 112th Congress next year, please find below the new leadership team in the House of Representatives for both parties. Many familiar names here.
House of Representatives (112th Congress, begins in January)
Majority (Republican) Leadership
Minority (Democratic) Leadership
Repeal Of 1099 Measure To Come To A Vote
When Congress returns from Thanksgiving recess, the Senate is set to vote on two measures, one introduced by Max Baucus (D-Mont.) and one by Mike Johanns (R-Neb.), that would repeal the increased Form 1099 reporting law. The bills are both amendments to the Senate Food Safety Modernization Act, S. 510.
The NASE supports efforts to repeal the legislation, along with other key small business thought leaders. Recently, both SBA Administrator Karen Mills and Chief Counsel for Advocacy Winslow Sargeant voiced their opposition to the law that would increase paperwork exponentially for small-business owners.
Read past NASE coverage of this issue, including survey results, here.
Estate Tax News Update
Good news may be pending for those in favor of estate tax relief. Champions of the cause, Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.), have supported efforts to expand relief and it is possible they might get a bill introduced during lame duck. Their earlier legislation on the topic reads as follows:
"“Mr. KYL (FOR HIMSELF AND MRS. LINCOLN) moves to commit H.R. 5297 to the Committee on Finance with instructions to report the same back to the Senate within 1 day with changes to provide a 35 percent estate tax rate phased in over 10 years, a $5,000,000 exemption amount phased in over 10 years and indexed for inflation, a stepped up basis for inherited assets, and, for decedents dying in 2010, an election under which no estate tax would be imposed and assets acquired from the decedent would receive a modified carryover basis. The Committee is further instructed to offset the difference in revenue loss between a permanent 45 percent estate tax rate with a $3,500,000 exemption amount and the proposed changes described in the preceding sentence.”
While many self-employed business owners are not affected by the estate tax, certainty in the tax code is essential for proper business planning. Thus, the NASE has long supported a permanent compromise on this issue rather than temporary fixes over the years.
Stay tuned to Washington Watch for more updates on this important issue.
Expiring Bush Tax Cuts, AMT
Still hot topics for the lame duck session are the expiration of the Bush tax cuts, which the NASE believes need to be addressed (see last week's Washington Watch).
There is also the issue of the expiring patch for the Alternative Minimum Tax. In 2010 the AMT affects more Americans than was ever intended and affects almost all small business owners even if no tax results from the additional calculation. The basic premise of the AMT system is that all people should pay their fair share, so the AMT provides for an alternate tax calculation that eliminates many deductions, exemptions and credits so that all taxpayers pay some tax.
Read more on the NASE position here.
Washington Watch Online
Visit NASE Advocacy to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business.
