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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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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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:

1. 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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