Breaking Down State and Local Aid under the SMART Act

The State Municipal Assistance for Response and Transition (SMART) Act, sponsored by Senators Bob Menendez (D-NJ) and Bill Cassidy (R-LA) in the Senate and by Rep. Mikie Sherrill (D-NJ) in the House, would provide $500 billion in flexible funding to state, local, and tribal governments to backfill lost revenues and otherwise provide fiscal relief during…

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Neutral Cost Recovery Is Not a New Idea

Today, lawmakers and the administration are exploring policies to meet the need to increase investment and economic output amid an economic downturn. Improving the cost recovery treatment of long-lived assets is a cost-effective tax policy change that can boost investment and growth. While full expensing is one approach and is a policy that lawmakers are…

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5 things companies should do in tough times

As companies are evaluating continued operations, balancing profits with acceptable levels of loss, functioning with massively more remote work and trying to make up for economic disruptions, the first thought tends to be “How can we cut costs?” Original Article Posted at : https://www.accountingtoday.com/opinion/5-things-companies-should-do-in-tough-times

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Empirical Evidence Shows Expensing Leads to More Investment and Higher Employment

As state and local governments begin to relax their restrictions on business and individual activities, the debate has begun over what policies will best help the economy recover from the COVID-19-induced shutdown. The Tax Foundation’s General Equilibrium Model suggests that allowing businesses to immediately deduct or “expense” their capital investments in the year in which…

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Louisiana Considers Temporary Suspension of Part of Corporation Franchise Tax

The Louisiana House is considering a resolution that would temporarily suspend a portion of the state’s capital stock tax, called the Corporation Franchise Tax. Louisiana is one of 16 states that levy capital stock taxes, which, unlike corporate income taxes, fall on a business’s net worth (or accumulated wealth) instead of its net income (or…

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IRS starts using prepaid debit cards to send coronavirus stimulus payments

The Internal Revenue Service and the Treasury Department are beginning to send nearly 4 million economic impact payments by prepaid debit card, instead of by paper check or direct deposit. Original Article Posted at : https://www.accountingtoday.com/news/irs-starts-using-prepaid-debit-cards-to-send-coronavirus-stimulus-payments

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