2007 Small Business Tax Act
On May 25, 2007 President Bush signed the Small Business and Work Opportunity Act of 2007. From all appearances, this is the first of many significant tax laws that will be passed in 2007.
The current attitude in Congress related to tax bills is to move forward a social agenda, and make tax increases as necessary to make the bill revenue-neutral. This act is no different. There are about 60 provisions of this bill, and the major ones that will affect the most people are listed here. We have flagged each of these according to whether in our opinion the provision is primarily socially driven or revenue balancing. There are also a few "house cleaning" items that seem to be neither.
|Minimum Wage Increase||X|| || |
|Extended/enhanced Sec. 179 Expensing||X|| || |
|FICA Tip Credit||X|| || |
|Extended/enhanced Work Opportunity Tax Credit||X|| || |
|Katrina Recovery GO-Zone Extensions||X|| || |
|Kiddie Tax Increases|| ||X|| |
|Family Business Tax Simplification||x|| ||X|
|Erroneous Refund Penalties|| ||X|| |
|Return Preparer Penalties|| ||X|| |
|Numerous fee increases|| ||X|| |