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Archive for the ‘tax reform’ Category

I wasn’t always like this, I swear. There was a time in my life when if I wanted to satisfy my urge for tinkering, I’d kill a few hours on ESPN’s NBA Trade Machine, trying to determine exactly who my beloved New Jersey Nets would have to give up to acquire a young James Harden. But now…well, now I scratch that same itch by wondering, “Can I devise a revenue-neutral tax reform plan?”

And yes, I am significantly less fun at parties than I used to be.

But before my nerdiness drives you away, consider the importance of my undertaking. A revenue neutral tax plan — one that generates the same amount of tax revenue over the next decade — is the carrot the GOP is chasing. Why? As we’ve discussed in this space before, a tax reform plan — one that cuts rates, simplifies the law, and yes, as mentioned in the previous sentence, results in no net loss of tax dollars — can be passed through what’s called the “budget reconciliation process.”

Under this process, should the House and Senate ever get around to approving budgets that provide for a tax reform plan, that plan could be passed with only a simple 51 majority in the Senate. And because Republicans currently hold 52 seats in the Senate, it means that the GOP could pass its vision of tax reform without a single vote from a Democrat.

The catch, however, is that in order to use the reconciliation process, any bill cannot add to the deficit beyond the ten-year budget window, hence the need for revenue neutral tax reform.

How hard can that be?

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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After enduring the healthcare debacle, Charlottesville nightmare, and a seemingly endless string of natural disasters, the White House is desperate for some good PR, and revamping the nation’s tax law is where it aims to find it.

Over the past year, many promises have been made and modified, proposals floated and abandoned, and timelines established and extended. And while I’d like nothing more than to use this space to get you caught up on the details of where we stand today — projected tax rates, a review of what deductions will be eliminated or survive, etc… — the reality is, those details simply don’t exist. In fact, we know far less today about what tax reform might look like than we did seven or eight months ago.

So instead, I’d like to take a look at the big picture: what are the five biggest questions that must be answered before the GOP can fulfill one of its biggest promises to the American public: a more simple, more fair tax system that leaves additional cash in the hands of businesses and families? Let’s take a look.

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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Admit it. As the battle over the future of healthcare divided our nation throughout the past few months, you remained squarely on the sideline. It’s not that you didn’t have an opinion on whether Obamacare should remain the law of the land or be replaced by one of two Republican offerings — the American Health Care Act or the Better Care Reconciliation Act — it’s just that you felt, well…stupid.

There was so much to understand and keep up with, and when that one guy in your office would give an impassioned defense of the preexisting conditions clause or rail against Medicaid, you felt like perhaps you weren’t quite informed enough to get involved.

Well, I’ve got news for you: that guy in your office? Total fraud. Nobody understands healthcare in this country. Not the people who receive it, not the people who provide it, and certainly not the lawmakers who determine its fate. Perhaps that last great bastion of journalism in this country — The Onion — put it best with this headline:
Man Who Understands 8% of Obamacare Vigorously Defends it from Man Who Understands 5%

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Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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It has been a couple of months since Tony Nitti did his last podcast but The Nitti Gritty is officially back! Listen to Tony Nitti, Withum Partner and writer for Forbes.com, discuss where we stand with tax reform. Tony will also cover the below court cases that took place over the last month:

  1. Mudrich vs. Commissioner TC Memo 2017-101 (alimony)
  2. Anderson vs. Commissioner TC Summary Opinion 2017-17 (deductible moving expenses)
  3. Austin vs. Commissioner TC Memo 2017-69 (business purpose and non-tax profit motive requirements of the economic substance doctrine)

Continue listening at Withum.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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What a rip-off. This was supposed to be my fifteen minutes. The summer of 2017 was when the discussion surrounding tax reform was going to dominate the airwaves, newswires and internet, with every TV station, publication and web site coming to me for my opinion on the pros and cons of potential changes. And I was going to shine.

But none of that materialized. Instead, tax reform has been largely forgotten, as the legislative progress has been stopped in its tracks by the never-ending, irreconcilable argument over Obamacare and, more recently, some potential light treason.

But yesterday, the veritable eggheads at the Tax Policy Center snapped me out of my summer doldrums and brought tax policy back to the forefront of the social consciousness by publishing its analysis of President Trump’s most recent tax plan. And it’s nothing if not revealing.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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Moments after the Atlanta Hawks made Alpha Kaba the final pick in the 2017 NBA Draft, the attention of the basketball world turned to what promises to be a frenzied free-agency period. Beginning July 1st, a bevy of big-name players hit the open market, including Chris Paul, Blake Griffin, Gordon Hayward, and the tattered remains of Derrick Rose.

For these free agents, there is much to consider in choosing their next team. Who offers the most established leadership? (Miami) The best weather? (Miami) The most accessible network of HGH dealers? (Miami)

Then, of course, there’s the little matter of money, and when it comes to extracting the most coin possible out of a contract, it typically behooves a free agent to do nothing at all, and simply re-up with their previous employer.

That’s because the NBA’s collective bargaining agreement affords advantages to a team in re-signing it’s own free agents, provided the team has so-called “Larry Bird rights” in the player. Generally, this requires the player to have been with the team for three consecutive seasons, though there are a host of other ways a team can obtain these rights.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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A few summers ago, my wife and I marked our ten-year wedding anniversary with a three-day getaway to Block Island. Our first night on the island, we went out to dinner, and while we awaited the arrival of our food, my wife shared the story of friend who had recently gotten a new job, and when she and her husband arrived at the restaurant that night to celebrate with dinner, the husband had thoughtfully arranged to have a bottle of champagne waiting at the table with a note that read, “Congratulations!”

Maybe my wife meant that as a hint; maybe she didn’t. That’s when it dawned on me: Ten years is a big deal. There are expectations involved. I should probably live up to them.

In recent days, President Trump found himself in the same uncomfortable situation I endured at that table in Block Island. Soon to mark his 100th day in office, he realized that he had done nothing to fulfill his promise to deliver a “phenomenal tax plan.” So as I did during dinner with my wife, the President scrambled for the best solution he could: a rushed, half-hearted gesture meant merely to meet his minimum obligations. There was no plan. There were no details. There was, quite literally, a one-page release with a handful of bullet points, that only served to raise more questions than answers.

But before we get to those questions, let’s take a quick look at the “plan.”

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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