Christine Walizer, Author at The S Corporation Association

Flaws in the Tax Foundation’s Review

The Tax Foundation is out with a new write-up called, “Are Pass-Through Businesses Treated Fairly Under the Senate Version of the Tax Cuts and Jobs Act?” that has a chart showing the top rate applying to S corporations in the Senate bill is 34.94 percent while the C corporation rate is 39.04 percent. Is that correct? No. Not even close.

Here are the concerns we have with the Tax Foundation Write-Up:

Deferral: The Tax Foundation analysis assumes that the full second layer of corporate tax is paid, and paid immediately. This is simply not true. First, there are some …

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admin2019-01-31T22:45:42+00:00November 20, 2017|

S-Corp Concerns with Senate Tax Reform Bill

Top Line

The Framework and rhetoric leading up to its release indicated that Senate Leadership and the Finance Committee were committed to treating the millions of companies organized as pass-through businesses fairly in relation to C corporations. The Framework explicitly called for a rate differential of five percentage points, while previous Finance Committee work focused on leveling the playing field between C corporations and pass-through businesses by eliminating the double corporate tax and moving the entire business community towards a single, reasonable level of tax on all businesses.

Unlike much of the business community, S-Corp fully supported both efforts and expressed that …

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admin2021-08-16T14:02:12+00:00November 11, 2017|

House Tax Reform and S Corps, Part II

The Ways and Means Committee is likely to wrap its tax reform markup today. The bill presents many challenges to pass-through businesses that are unlikely to be fixed today. Here are some quick hits on what we’re seeing.

Reality v. Rhetoric

We continue to hear from S corporations who believe they will get a 25 percent tax rate under this bill. As we reported earlier this week, most businesses won’t see anything even close to the 25 percent rate. Part of the confusion is the rhetoric coming out of Congress. For example, here’s one description from the House:

That’s not …

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admin2019-01-31T22:46:38+00:00November 9, 2017|

House Bill & S Corps

The House tax reform bill to be considered this week has a headline top rate of 25 percent for S corporations and other pass-through businesses, but in many cases the real rate is significantly higher. S corporation owners need to pay attention.

Here are some of key details:

Professional Services: First, the 25 percent rate doesn’t apply to professional service businesses. Specifically, the bill excludes businesses engaged in “the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, any trade or business where the principal asset of such …

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admin2021-08-16T14:02:16+00:00November 6, 2017|

S-CORP Response to H.R. 1

WASHINGTON, D.C. – S-CORP has been a vocal supporter of the House Republican Blueprint and the unified tax reform framework. We have serious concerns though about the pass-through provisions in the tax reform draft released today. They fall well short of parity with the new 20-percent corporate rate, and, absent amendment, would result in tax hikes for a broad range of pass-through businesses. We look forward to working with the Committee and House leadership to address these concerns and move forward on tax reform.

We support the new 25-percent pass-through rate, but the guardrails that accompany the rate would severely limit …

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admin2021-08-16T14:02:19+00:00November 2, 2017|