Tax Policy - The S Corporation Association

Talking Taxes in a Truck Episode 47: Jared Walczak on the Wealth Tax Proposal That’s Forcing Californians to Flee

On the latest episode of Talking Taxes in a Truck, we’re joined by Jared Walczak, Senior Fellow at the Tax Foundation, to unpack California’s proposed wealth tax and what it signals for state tax policy nationwide. Walczak explains why the unprecedented 5 percent tax – particularly its aggressive valuation rules for founders with super-voting shares – could dramatically overtax entrepreneurs, invite serious legal challenges, and accelerate capital and job flight. Jared also zooms out to talk national migration patterns, as many states move to cut taxes and boost competitiveness while a small number double down on higher taxes, intensifying interstate …

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admin2026-01-30T18:36:38+00:00January 30, 2026|

Tax Cuts Don’t Sell Themselves (But Big Refunds Help)

As tax season progresses, supporters of the Working Families Tax Relief Act are highlighting the provisions that made it possible.

That’s good news because tax cuts don’t sell themselves. As our friend David Winston pointed out in a recent op-ed, convincing Americans they benefited from tax legislation is often harder than passing it in the first place. Absent a concerted effort, the big refunds that are set to hit bank accounts in the months ahead won’t be connected back to the tax bill passed last summer.

Just to be clear – there’s lots to sell. Tax filing season is officially …

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admin2026-01-28T17:17:16+00:00January 28, 2026|

Wage Taxes are Destructive – Let’s Ditch Them

Last week’s circuit court decision on the meaning of “limited partner” has broad implications for S corporations in the coming tax battles. As noted in the court’s ruling:

This case turns on the meaning of “limited partner” in 26 U.S.C. § 1402(a)(13). The Tax Court interpreted “limited partner” to refer only to passive investors in a limited partnership. It therefore upheld the IRS’s upward adjustment of Sirius Solutions’s net earnings from self-employment. We disagree. A “limited partner” is a partner in a limited partnership that has limited liability. So we vacate and remand.

The court further noted:

So, to review, the pass-through …

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admin2026-01-22T14:46:15+00:00January 22, 2026|

You Can’t Fix Stupid

When Norway recently enacted a new wealth tax, it was billed as an easy way to make the rich “pay their fair share.” They packed their bags instead.

Within a year, hundreds of high-net-worth Norwegians fled the country, taking with them billions in capital, thousands of jobs, and a massive portion of the tax base. The exodus has been so severe that government revenue declined, serving as a case study in the inevitable response to bad tax policy.

Learning nothing, California is flirting with the same economic poison. A proposed “billionaire …

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admin2026-01-09T17:42:51+00:00January 9, 2026|

Wealth Tax Mania Spreads East

With California’s wealth-tax debate heating up, it appears Congress does not want to be outdone. New York Democratic Representative Dan Goldman has introduced a new tax aimed at appreciated property held by high-net-worth individuals. The legislation offers yet another chance to highlight why tax proposals targeting capital all suffer from the same fatal flaws.

Goldman’s Redistribution of Billions by Instituting New High-Income Obligations on Overlooked Debt (ROBINHOOD) Act would impose a 20-percent excise tax on loans secured by appreciated assets. When a taxpayer borrows against the value of stock, real estate, or a business interest that has risen in value, …

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admin2025-12-23T15:40:17+00:00December 23, 2025|