With tax reform passing the Congress in the next few hours, S-Corp sent a note of thanks to those members of the Senate – Johnson, Daines and Inhofe – who stood up for Main Street businesses at a most critical time.  As the letter states:

Thank you for your outstanding leadership to promote tax fairness for thousands of American Main Street and family businesses throughout consideration of H.R. 1, the Tax Cuts and Jobs Act. 

Because of your efforts, the final conference agreement included a number of improvements, including provisions directly aimed at addressing the ability of pass-through businesses and their workers to remain competitive here at home and internationally.  We are confident that these key features of the bill would not have been included without your active support.

Specifically, the bill contains a new 20% deduction for pass-throughs, which, combined with lower individual tax rates, results in an effective top tax rate of 29.6% for qualified income.  Unlike early versions of the bill, the final conference report would allow businesses held in trusts and estates to use the new deduction, helping many family-owned businesses to stay in the family.  On the international front, the final bill preserves the interest charge domestic international sales corporation (IC-DISC), an essential feature of the tax code, that allows small businesses to compete on a level playing field and keep thousands of high paying manufacturing, seafood, and agriculture jobs here in the United States.  

We will have more to say about the tax bill passing Congress in the future, but for now, we’re focusing on those members who really did stand with Main Street.