The S Corporation Association (“S-CORP”) today sent a letter to congressional tax writers advocating for the inclusion of S corporation reforms in the final small business tax relief package and for the need to make these provisions effective immediately.
Signed by the S Corporation Association, the Associated General Contractors, the Printing Industries of America, the Independent Community Bankers of America, the Association for Manufacturing Technology, America’s Community Bankers, and the National Roofing Contractors Association, the letter emphasizes the important role S corporations play in the growth of small businesses and the importance of easing the rules under which they operate.
“While the S corporation community has grown, many of the rules governing their operations have remained the same. The Senate-passed package of small business tax relief would address some of these rules, making it easier for S corporations to compete with LLCs and other business forms,” the letter notes. “While these provisions do not address all the challenges faced by S corporations, they are a significant step towards eliminating unnecessary and costly rules that hinder the ability of S corporations to grow and create jobs.”
S-CORP Chairman Tom McMahon observed that several of the provisions included in the Senate package have been long time priorities for the S Corporation Association. “Provisions to reduce the impact of the so-called “sting tax” and to expand the eligible population of S corporation shareholders are two priorities for our group and they represent positive steps in the long road towards establishing parity between S corporations and LLCs, ” McMahon said.
S-CORP Executive Director Brian Reardon pointed out that both history and the economics support making S corporation reforms part of the minimum wage increase. “S corporation reform was a big part of the tax package that accompanied the last increase in the minimum wage,” Reardon observed. “While S corporations appear to be disproportionately represented in industries that pay the minimum wage, the average S corporation has significantly fewer resources than the average C corporation to pay those increased labor costs.”
The S Corporation Association is the only association that speaks exclusively for the national interests of America’s 3.6 million Subchapter S businesses. S-CORP was founded in 1996.