S-Corp has argued that fixing Social Security’s pending insolvency will require some creative thinking, including scrapping outdated, harmful wage taxes. They were a bad idea when Social Security was created, and they’re an even worse idea now. It’s an aggressive approach, but given the size of our fiscal challenges, now is the time for aggressive policies.

A recent op-ed by Senators Elizabeth Warren and Bernie Moreno moves in the opposite direction by subjecting all wages to the Social Security tax. It seeks to “fix” the problem of Social Security insolvency the way Congress always has – by throwing more …

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Long-time S-Corp ally George Callas is out with a great piece on the history of the NIIT and how the effort to expand the tax to active business income is nothing more than a money grab built on revisionist history. Congress exempted active business income from the NIIT on purpose, and for good reason.

This is a big deal for S corporations. As George explains:

Despite this extensive effort by both Congress and Treasury to limit the NII tax to taxpayers who “lived off investments,” the proponents of higher taxes are now characterizing the exemption of active business income as …

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