S-Corp joined with over 100 trade associations today in urging Congress to reject the White House’s Build Back Better framework, the latest version of Democrats’ multi-trillion-dollar tax and spend plan.

This latest iteration replaces the many problematic tax hikes in previous drafts with new – but equally problematic – tax hikes, the sum of which would disproportionately hit Main Street businesses. Under this framework, the 21-percent tax rate on large multinational corporations remains unchanged while the top rate on Main Street businesses rises to over 50 percent!

Since the bill changes every day or two, it’s been difficult to highlight this …

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Lynn Mucenski-Keck, a Partner at the accounting firm The Bonadio Group, has a fantastic piece in Forbes that makes the pass-through case against the framework’s tax increases.

“Pass-Through Owners Bear the Hit with Proposed Federal Tax Law Changes,” explains how a bill purportedly targeting billionaires and large corporations instead goes after Main Street businesses organized as pass-throughs. The excerpt below sums things up perfectly:

Unfortunately, when you follow the money, the picture starts to reveal that the taxpayers bearing the burden for the revenue are disproportionately pass-through entity owners, and not the large multinational companies and estates as many believed.

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Over the past year, S-Corp has attempted to arm its allies on and off the Hill with as many tools and resources as they need to fight the tax hikes moving through Congress.  Today, we are releasing new data from EY showing just how many communities and districts rely on private companies and pass-through employers for their jobs.

These numbers are just the latest in a long list of advocacy items S-Corp has authored or sponsored that show just how misguided the House tax hike legislation is.  Below is a complete summary of all these items, together with links to all …

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S-Corp has had about 24 hours to digest the White House “framework” and corresponding legislative text, and the more we read, the worse it gets.  For those members worried about raising rates, it’s important to note that a “surtax” is still a rate hike, as is expanding the Net Investment Income Tax (NIIT) to all pass-through income.

As we wrote yesterday, just three provisions – applying the 3.8 percent NIIT to all pass-through profits, expanding and making permanent the loss-limitation rules, and imposing a new 8-percent surtax on pass-through …

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The “framework” released by the White House this morning continues the assault on family-owned businesses.  Advertised as a less aggressive plan than the Administration’s Build Back Better (BBB) proposal, the bill would result in higher marginal rates on family-owned businesses than the BBB, and it would apply those rates to S corporations and other pass-through businesses making as little as $500,000 a year.

For pass-through businesses, the bill includes three substantial tax increases.  It would:

• Apply the 3.8 percent Net Investment Income Tax to all income earned by S corporations and partnerships. This tax was enacted as part …
  
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