A new comprehensive tax reform proposal was introduced by House Ways and Means Committee Chairman Dave Camp on February 26th, 2014. Camp’s proposal would cut the tax rate for C corporations to 25% over a period of five years. It would also cut individual tax rates to two brackets (10% and 25%), but it would add a 10% surtax on high income taxpayers. Of interest to the ESOP community is the fact that Camp’s proposal would cut in half the maximum pre-tax annual contributions that could be made to certain defined contributions plans, including 401(k) plans but not including ESOPs. According to House Speaker John Boehner, however, it is not likely that the Camp proposal will be voted upon during 2014. Subsequently, on March 4, 2014, President Obama released his 2015 Budget proposal, which includes a proposal to cap Section 401(a) plan retirement accounts to $3 million per individual. Since ... Read More..
Editor/founder Richard Gillespie has announced that Fast Cuts Edits has become 100 percent employee owned through the creation of an Employee Stock Ownership Plan (ESOP). ... Read More..