Tax Planning and The Political Pendulum
Democratic senators have filed a wave of tax bills aimed at higher‑income earners and closely held businesses, signaling a "tax‑the‑wealthy" agenda ahead of the 2026 midterms and a potential 2028 Democratic trifecta. Proposals include raising the corporate rate to 28%, lifting the top individual rate to 39.6%, and taxing capital gains above $1 million at ordinary rates. Additional measures target estate and gift taxes, introduce a 20% minimum wealth tax on assets over $100 million, and expand SECA and Medicare taxes on business income. While unlikely to pass in the current Republican‑controlled Congress, the bills set the policy baseline for future campaigns.
The “Mandated” New York S Corporation Election – Does Investment Income Include Gain From the Sale of Goodwill?
New York’s tax code mandates that a federal S corporation be deemed a New York S corporation when more than 50% of its federal gross income is classified as investment income. In a recent case, the Department of Taxation and...