Uncategorized - The S Corporation Association

SALT Parity Update

Lots of progress on the SALT Parity front to report! As readers know, S-Corp and the Parity for Main Street Employers coalition has advocated for the restoration of the federal SALT deduction to businesses organized as S corporations, partnerships, and LLCs.

In Minnesota, the House Tax Committee yesterday considered HF871, legislation introduced by Representative Greg Davids to enact our SALT Parity approach. The hearing featured supportive testimony from Beth Kadoun from the Minnesota Chamber of Commerce, Mike Hickey from the National Federation of Independent Business, and John Kammerer from Redpath and Company and the S Corporation Association.

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admin2020-03-06T19:33:31+00:00March 6, 2020|

Brookings and Progressivity

We interrupted our impeachment viewing last week for a Brookings Institute briefing exploring various ways the Congress could raise taxes. A book of revenue raising recommendations accompanying the briefing weighed in at a hefty 368 pages. According to the book’s editors, “This book is about taxes. It poses a simple question: Given that the United States needs more revenue, how should we raise it?”

It’s too early for us to digest all 368 pages, but the book raises one issue that’s worth exploring from the onset – the progressivity of the U.S. Tax Code and which direction we’re headed. …

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admin2020-02-05T20:49:22+00:00February 5, 2020|

Our Chairman’s Annual Letter

Dear S-CORP Member:

The S Corporation Association recently surveyed voters and asked them how much private companies and other taxpayers should pay in taxes every year?

Almost without exception, the responses were consistent, reasonable and completely out of step with today’s rhetoric. Voters believed family businesses should pay no more than twenty cents for every dollar of income, or about half what most actually pay and less than one-third what they would pay under a wealth tax as proposed by Senators Warren and Sanders.

How to explain the disconnect? How can voters support reasonable tax rates on one hand and destructive …

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admin2020-01-22T16:45:45+00:00January 22, 2020|

S Corps and Income Inequality

Much of today’s tax policy debate is premised on the notion that income inequality is bad and getting worse. Economists Piketty and Saez have published numerous papers making this case (here, and here), and Saez recently wrote a book arguing for a wealth tax to address this inequality. But what if their premise is simply wrong? What if the whole income inequality narrative itself is built on a faulty foundation?

It’s been known for a long time that Piketty’s and Saez’s estimates fail to fully account for missing income sources, shrinking households, and the effects of tax policy on …

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admin2019-10-31T20:15:14+00:00October 31, 2019|

EY on Tax Parity

EY has published a new study commissioned by the S Corporation Association entitled “Large S Corporations and the Tax Cuts and Jobs Act: The economic footprint of the pass-through sector and the impact of the TCJA.” The study’s author, Robert Carroll, will be featured at the Main Street briefing today held in the Russell Senate Office Building. You can read the full study here.

Key takeaways from Bob’s work include:

Pass-Through Tax Parity: In terms of both effective and marginal tax rates, the analysis shows that prior to TCJA, large S corporations and C corporations faced similar tax rates. …

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admin2019-10-25T18:43:24+00:00October 24, 2019|