In the phase-in
years, the maximum credit is 35% of the employer's eligible premium expense (25% for tax-exempt employers).
The phaseout of credits based on additional income can cause an even greater impact than the phaseout of deductions and exemptions and phase-in
of income from specific sources, because the phaseout of credits increases the marginal tax rate by 100%.
According to their analysis, the phased-in tax cuts of the 2001 tax bill substantially reduced employment, output, and investment during the phase-in
period relative to alternative policies with immediate, but more modest tax cuts.
Because of the phase-in
, phase-out aspects of the 2001 tax act, a calendar will be an essential tax-planning tool for anyone who wants to remain on top of these changing laws.
Table 1 illustrates the phase-in
of the income tax rate reductions.
* The estate tax is still in effect at a minimum for the next 10 years, subject to many phase-in
The MRTC itself includes an incubator section for start-ups as well as space for larger phase-in
companies and anchor tenants.
Whatever shape the final agreement takes, its impact across industries will vary, one reason being the phase-in
provisions that can call for immediate implementation of negotiated terms in some industries and gradual implementation in others.
Given the likely length of that process and the long phase-in
period for some provisions, it will take more than one tax season for tax advisers, preparers and payers to decide whether the intended "relief" of the Tax-payer Relief Act outweighs the headaches.
"A six-month phase-in
period is ideal," Miller says.
AOA President Irwin Gumley, who is also president of Gumley-Haft, said they hope the phase-in
will remove the disparity and bring co-op assessments in line with where they would have been if they had remained with Class I.
They ask him about deductions and timetables and tax credits and corporate rate phase-ins