Tax writers need to put a trigger warning on future 199A discussions, particularly for DC tax experts.  It appears they are highly sensitive to the topic.

For example, in response to Ways and Means Chairman Jason Smith’s recent support for increasing the 199A deduction to 25 percent, AEI’s Kyle Pomerleau posted some thoughts that, on the surface, appear to make sense:

Pass-through businesses are already tax advantaged. Although C corporations face a 21 percent corporate tax rate, their profits are also subject to the individual income tax when distributed to shareholders. After considering various tax provisions that reduce the …

(Read More)

A broad coalition of Main Street organizations is making the case for the Working Families Tax Cut Act and what it means for the businesses that drive the American economy.

Earlier today, around 100 trade associations signed onto a letter thanking lawmakers for enacting the historic tax relief last year. The letter was organized by our Main Street Employers Coalition and highlights the bill’s real, lasting benefits to the pass-through businesses that employ the majority of private sector workers:

Making permanent lower marginal rates and the Section 199A small business deduction were key to the success of the bill. Those provisions …

(Read More)

Over the weekend, the Washington Post offered a welcome dose of clarity in the debate over who really bears the burden of higher taxes. As the Board put it:

Taxing ‘the rich’ would affect most private-sector workers, who are employed by pass-throughs but are not rich themselves. Jacking up taxes on small employers isn’t going to help make the American economy fairer or more competitive.

This is a big issue that we touched on just last week. S&P 500 companies employ roughly 18 percent of the U.S. workforce, while privately-owned firms employ nearly 80 percent.

…

(Read More)

If you follow financial news, you could be forgiven for thinking the American economy begins and ends with Nvidia, Apple, and a handful of other S&P 500 giants.

But a recent analysis from Apollo’s Torsten Slok offers a useful reminder that those companies represent a much smaller slice of the actual economy than their coverage suggests. The numbers, instead, point straight to Main Street.

Slok’s data shows that S&P 500 companies employ roughly 18 percent of the total US workforce and account for about 21 percent of all capital investment in the economy. Privately owned firms, by contrast, drive nearly 80 …

(Read More)