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Bloomberg Is Wrong About Tax Rates

Where does fairness lie? At a time when Main Street is struggling to stay open while Wall Street flies high, you might be surprised that Bloomberg thinks it’s private companies organized as S corporations and partnerships that have the advantage, at least when it comes to taxes.

The Bloomberg story at issue reviewed the 2017 Tax Cuts and Jobs Act and whether it lived up to the promises made by its sponsors, including the goal of balancing out the tax treatment of private and public companies. Here’s the key graph:

“Just in

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2021-03-05T18:46:47+00:00February 1, 2021|

Don’t Sell Out Main Street

Congress is on the cusp of passing a truly bipartisan assistance package to help the families and employers through the last months (yeah vaccines!) of the COVID-19 pandemic.  As part of this package, the entire business community and its Hill allies support expanding and extending the Paycheck Protection Program (PPP) while clarifying congressional intent on the tax treatment of PPP loans.

As we’ve written before, getting the tax treatment of PPP loan forgiveness correct would avoid a surprise $120 billion tax hike on the five million employers who took out PPP loans.  Those employers were promised tax-free forgiveness when

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2020-12-29T17:28:16+00:00December 17, 2020|

PPP Tax Treatment on the Line

With Congress poised to adopt a compromise COVID-19 package in the next week, a BIG outstanding issue is how loans forgiven under the Paycheck Protection Program (PPP) will be taxed.  It’s literally a $160 billion sword hanging over the head of Main Street.

On one side, you have key Congressional leaders and the entire business community in agreement that Congress wanted this money to be tax-free – more than 600 trades wrote to Congress just last week!  On the other hand, you have the IRS and the out-going Secretary of Treasury who calls it “double-dipping.”  Here’s the case for

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2020-12-29T17:36:51+00:00December 15, 2020|

The 2020 Elections and their Implications for Private Businesses

Are you a fan of the Progressive Insurance commercials making fun of mismanaged Zoom calls? Then you’ll love the blank Zoom screen for the first 10 minutes of our most recent S-Corp Member call covering the 2020 election results and what they mean for private companies.  You can access the full video here.  You can access the slide deck here.

We’re biased, obviously, but we think it’s well worth watching, particularly the portion focused on what companies can expect moving forward, as well as the BIG news (covered at the

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2020-11-11T20:55:55+00:00November 11, 2020|

Stop the Surprise Small-Business Tax Increase

An Op-ed by Christopher Smith, Executive Director of the Parity for Main Street Advisors coalition, ran this morning in the Morning Consult.

The Payroll Protection Program enacted this past spring has helped millions of employers and workers survive an economy that was in freefall from COVID-related closures. Now, with the recovery underway, those same small businesses will face a surprise $100 billion tax hike if Congress fails to act soon. 

The PPP program’s design was simple – use local banks to provide loans to smaller employers during the shutdown. If the employers used the money to keep workers employed and on other

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2020-09-29T14:12:21+00:00September 29, 2020|