An increase in income tax rate means you'll pay a higher percentage of your income to the government. This directly reduces your disposable income, the money you have left after taxes for spending or saving. This can make it harder to afford basic necessities, save for retirement, or invest in your future.
Brownstein’s National Tax Policy Group has created the PROTECT (Passthroughs Relying On Tax Equity & Championing Thriving Businesses) Coalition—a group dedicated to preserving the Section 199A Qualified Business Income Deduction. This provision was enacted as part of the Tax Cuts and Jobs Act (TCJA) to equalize the tax rate between corporations and passthrough entities. The provision allows passthrough business owners to deduct 20% of qualified business income when determining their federal tax liability, meaning that passthrough owners who are taxed at the highest statutory rate of 37% have an effective tax rate of 29.6%. The Section 199A deduction facilitates the growth of small and family-owned businesses, the majority of which operate as passthroughs.
Senate Finance Committee Hearing Discusses Tax-Filing Season, Direct File: On April 16, the Senate Finance Committee held a hearing titled “The President’s Fiscal Year 2025 IRS Budget and the IRS 2024 Filing Season.” Internal Revenue Service (IRS) Commissioner Daniel Werfel testified on progress made during the 2024 tax-filing season, including on taxpayer-service initiatives and the Direct File pilot program.
France, Brazil to Jointly Introduce Information-Sharing Proposals: On April 15, the French Ministry of Economics, Finance and Industrial and Digital Sovereignty announced that France and Brazil’s finance ministers will unveil joint proposals to increase requirements on information sharing between the tax authorities of G20 countries. The proposals would also increase transparency obligations and implement anti-tax avoidance mechanisms. Discussing the proposal, French Minister of the Economy, Finance, Industrial and Digital Sovereignty Bruno le Maire signaled that the new rules will facilitate the execution of the global minimum tax, saying, “I will put the same determination into implementing this minimum tax on income as I put into implementing the tax on digital giants or the minimum tax for large multinationals.”
Tax Day Report—Returns Processed Exceed 100 Million; Updates on IRS Direct File, Free File and Customer Service Initiatives: April 15 was Tax Day, marking the deadline for most U.S. taxpayers to file their federal tax returns. Reportedly, the filing season went relatively smoothly, with IRS statistics as of April 5 showing that the IRS has once again processed over 100 million returns. Of those 100 million returns, more than 98 million were filed electronically. Though the number of taxpayers who received refunds decreased, the total amount refunded and the average amount refunded per taxpayer both increased. In addition, the number of visits to IRS.gov increased by more than 18%, indicating higher usage of IRS informational resources as well as the expanded “Where’s My Refund?” tool.
About Brownstein Hyatt Farber Schreck
Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you’ll immediately recognize a different type of energy. Complacency doesn’t have a place here. Flexibility and inspiration do. Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients’ needs and provide them with the resources they require to meet their business objectives.
We hope you've enjoyed this article. While you're here, we have a small favor to ask...
As we prepare for what promises to be a pivotal year for America, we're asking you to consider becoming a member.
The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.
Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC. Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.
#incometax #taxseason #federaltaxpolicy #taxation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #CapitalGainsTax #incometaxrates #incometaxseason #taxrefund #taxreturn #incometaxreturn #gifttax #Generationskippingtax #InheritanceTax #repealestatetax #FamilyBusiness #promotefamilybusinesses #familyowned #supportlocalbusiness #womeninbusiness #AdvocatingForFamilyBusinesses #Generationallyowned #Multigenerationalbusiness @FamilyEnterpriseUSA @PolicyAndTaxationGroup @DitchTheEstateTax #FamilyEnterpriseUSA #PolicyAndTaxationGroup #DitchTheEstateTax