Christine Walizer, Author at The S Corporation Association

Administration Updates its Corporate Tax Reform Proposal

Lost in all the hoopla over the Treasury’s new inversion policies was the accompanying update to their corporate tax reform outline. You can read the whole 30-page document here, but the bottom line is that not much has changed.

The plan still treats the pass-through community as second-class citizens by broadening the tax base for all businesses while only reducing rates for those organized as C corporations. As a result, successful pass-through businesses would be subject to 45 percent top rates on a broader base of income – a double whammy coming just three years after the Fiscal Cliff hiked …

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admin2019-02-01T19:56:25+00:00April 7, 2016|

New Name, Same Mission

It’s a new year, so we’ve rolled out the latest version of our pass-through business principles. As in previous years, the letter hits on the three key elements necessary for any successful tax reform plan – it needs to be comprehensive, restore rate parity, and continue to reduce or eliminate the double tax on corporate income.

Also as in previous years, the list of signatories is long! With more than 100 national business groups signed on, the letter once again demonstrates the widespread support for tax reform that treats Main Street employers as equal partners.

What is new this year, however, is …

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admin2019-02-01T19:56:25+00:00March 22, 2016|

S-Corp in WSJ

S-Corp President Brian Reardon and Advisory Committee Chair Tom Nichols made the pass-through tax reform case in the pages of the Wall Street Journal on Friday.

The core message of the piece is that businesses both large and small have already voted against the concept of double-taxing business income, and it’s time for the tax code to catch up. As the piece notes:

On paper, the U.S. has a world-wide tax system that imposes two layers of tax on overseas business income—an initial foreign tax when the money is earned and a second U.S. tax when the money is repatriated. In …

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admin2019-02-01T19:56:25+00:00March 1, 2016|

More on the Administration’s Budget

We weren’t the only ones who noticed the President’s budget for 2017 is bad for Main Street Employers. Numerous outlets ran stories (CQ, Bloomberg, and Morningstar) focusing on the negative impact the President’s tax proposals would have on S corporations and other pass-through businesses. As our friends from NFIB noted about the Administration’s proposal to expand the Net Investment Income Tax (NIIT) to all pass-through business owners:

“It’s not closing any gap,” said Nick Karellas, tax counsel at the National Federation of Independent Business. “It’s just blatantly a revenue grab on small-business owners who are actively participating in …

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admin2019-02-01T19:56:25+00:00February 19, 2016|

Administration Budget

The President’s budget is out and, as usual, it includes a number of retread proposals to hike taxes on pass-through businesses, including the Buffett Tax and a big hike in the capital gains tax. We’ve dealt with these in the past.

There is, however, a new tax hike directly targeted at the Main Street Employer next door – an expansion of the Net Investment Income Tax (NIIT) to include all S corporation shareholders and other pass-through business owners.

The NIIT was enacted to help pay for the Affordable Care Act and is designed to tax the investment income of taxpayers …

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admin2019-02-01T19:56:25+00:00February 9, 2016|