corporate rate - The S Corporation Association

Ways & Means Takes on Tax Reform

The House Ways and Means Committee began its focus on tax reform yesterday with a hearing on economic growth. The hearing, entitled “How Tax Reform Will Grow Our Economy and Create Jobs” featured four company representatives and one hedge fund manager invited, oddly enough, by the Minority.

One of the company witnesses, Zach Mottl, is the Chief Alignment Officer for Atlas Tool Works, a multi-generation family business located outside of Chicago. Operating in an industry with large, multinational competitors, Zach made clear the current rate structure is tilted against smaller companies like theirs that lack the international presence to …

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admin2021-08-16T14:02:35+00:00May 19, 2017|

Should Main Street Businesses Elect C Corp Status? No!

The idea that corporate-only tax reform isn’t so bad because Main Street businesses can elect C corporation status has been argued for years. But should Congress reduce the corporate tax rate with the expectation that pass-through businesses will just switch to C status to access the lower rates? The answer is no. Here are the main points:

It’s the opposite of tax reform. The corporate-only approach to tax reform is effectively “anti-tax reform.” It will return us to the pre-1986 era, when corporate tax rates were significantly lower than individual rates and tax gaming and income sheltering were rampant.
It increases the …

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admin2019-02-01T20:00:10+00:00February 4, 2015|

Keeping Rates the Same

It’s Easter recess here in D.C. and we’ve had a chance to catch up on our reading. Topping the stack was Marty Sullivan’s Tax Notes piece from March 26th. It’s a rebuttal to our tax reform principles letter signed by 45 business groups here in town, so we thought a rebuttal to the rebuttal was in order.

As a reminder, our letter calls on Congress to reform the tax code by adhering to three broad principles: make reform comprehensive, keep the rates low and the same, and continue to reduce the incidence of double taxing corporate income. Marty appears to …

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admin2019-02-01T20:21:28+00:00April 10, 2012|