S Corporation Revision Bill
Introduced
Congressman Clay Shaw (R-FL) this
week introduced the Subchapter S Revision Act of 1999 to
improve S corporations’ access to capital and eliminate
unnecessary and complex rules that currently apply to
them. Among other provisions, this legislation would
count all family members as one shareholder; permit
issuance of convertible or plain vanilla preferred
stock; apply C corporation rules for fringe benefit
purposes; and, put the House of Representatives on
record as opposing President Clinton's proposal to treat
the conversion of large C corporations to S corporations
as taxable liquidations. AGC strongly supports Rep.
Shaw’s bill (no bill number has been assigned).
Senate Commerce Committee approves FAA and
AIP multi-year reauthorization: On February 11,
the Senate Commerce Committee approved S.82, the Air
Transportation Improvement Act. The bill reauthorizes
the Federal Aviation Administration (FAA) and Airport
Improvement Program (AIP) through fiscal year 2000. The
FAA and AIP authorizations expire on March 31, 1999. The
House has passed a bill extending the programs through
September 30, 1999 , but does not intend to move a
multi-year bill until May.
TEA-21 funding threatened: President
Clinton’s fiscal year 2000 budget violates the law of
TEA-21 by diverting most of the $1.5 billion in
additional gas tax revenues to a few select
transportation programs, rather than distributing the
additional funds by formula to the states as TEA-21
directs. Less than one year since the signing of TEA-21,
the promises made in TEA-21 are being threatened. AGC
must protect TEA-21 from any meddling with the
"firewalls" included in the bill that ensure the annual
fuel tax revenues will be spent on transportation
improvements. Please call or fax your Representatives
and urge them to oppose President Clinton’s budget
proposal because it changes the TEA-21 funding formula
and tramples states’ rights. (A sample letter is
available on the AGC website www. agc.org >Members
Only Section.>Legislative Area>Congress at Your
Fingertips>Write to Congress.)
Ergonomics draft circulating at
OSHA—A January 6th draft of OSHA’s proposed
ergonomics regulations has been leaked. While the
proposed rule would not apply to the maritime,
construction or agriculture industries, it is expected
those industries would be covered under subsequent
regulations. The draft follows previous ergonomics
proposals and has been described by human resources
professionals "as too complex and too detailed" to be
effective.
Enzi reintroduces SAFE Act—Wyoming
Senator Mike Enzi has reintroduced legislation to
modernize the Occupational Safety and Health Act. It
focuses on preventing accidents in the workplace, rather
than issuing citations. AGC strongly supported the SAFE
Act last year.
Ask Congress to Support Death Tax
Relief —Congressional Republicans are currently
struggling to formulate a consensus tax cut plan for
this year. Some favor a 10 percent, across-the-board
income tax cut, while others advocate targeted tax cuts.
Members will be back in their home districts during the
President’s Day recess February 13-21. During this time,
take a moment to call or fax your member’s local office
and tell him/her that you want Congress to eliminate the
death tax this year. Here are a few points to make:
- Death tax planning diverts valuable resources from
investment and employment;
- Death taxes are a primary reason why businesses
fail to survive beyond one generation;
- With the death tax as a leading cause of business
failures I am concerned about the future of my company
and its contribution to my community.
Ask your Representative and Senators to cosponsor
legislation to eliminate the death tax and to support
these bills when Congress considers tax cuts this year.
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