The Washington Wire Archive - The S Corporation Association

More than Half of Small Business Income Targeted Under Obama Tax Hike

The S Corporation Association today responded to reports that President Obama would press to raise taxes on S corporation owners and other taxpayers earning more than $250,000 a year:

“Pass-through businesses like S corporations employ the majority of private sector workers. The President is proposing to raise taxes on a large number of their employers, putting those jobs at risk. According to the Joint Committee on Taxation, more than half of all pass-through income is taxed at the top two tax rates. Raising taxes on that much economic activity at a time when unemployment is already too high is harmful …

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admin2019-02-01T20:18:46+00:00July 9, 2012|

The Supremes and S Corps

The Supreme Court upheld the constitutionality of the individual mandate today. For health care agencies, providers, insurance companies, and states that means they have 18 months to rework their entire health care system, including creating the network of state-based exchanges where people will buy health insurance starting in 2014. It’s time for them to get busy.

For S corporation shareholders and other taxpayers, it means higher taxes starting in 2013. Specifically, the ruling preserves the new, 3.8 percent tax on investment income that will take effect next year. Coupled with the expiration of rates, the new top rates are:

…

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admin2019-02-01T20:18:52+00:00June 28, 2012|

S Corps More Efficient

We have long argued that the American economy benefits from allowing entrepreneurs multiple business forms from which to choose.

Each business has its own unique capital, management, governance, and transition challenges, and allowing those businesses to choose between C corporations, S corporations, LLCs, partnerships, and sole proprietorships enables them to pick the structure that best suits their needs.

New data from SNL Financial focused on banks suggests entrepreneurial choice may also contribute to a bigger economy. As described in American Banker:

The return on assets at the median S corp has consistently outdistanced the median for C corps by a wide margin over …

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admin2019-02-01T20:21:27+00:00June 26, 2012|

Cliff Notes II

With less than 200 days left before Washington leads the economy over the fiscal cliff, the Joint Committee on Taxation (JCT) has offered up more evidence that Congress needs to act to extend the current tax rates for everyone, including those business owners with higher incomes. As Bloomberg reports:

President Barack Obama’s plan to raise tax rates for the top 2 percent of U.S. households would mean higher taxes on the people who report 53 percent of business income reported on individual returns, according to the Joint Committee on Taxation.

According to the JCT, in 2013 nearly 1 million …

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admin2019-02-01T20:21:27+00:00June 20, 2012|

Cliff Notes

House leadership has made clear they will take up legislation to extend the current tax rates and other policies through 2013, combined with expedited procedures for tax reform to be enacted in 2013.

This one-two punch is designed to address two challenges facing policymakers today. The first is the tax component of the “fiscal cliff” we face at the end of the year. The pending expiration of the lower rates on wages, business income, and investment income is having a tangible, negative impact on investment and job creation right now and, left unchecked, threatens to push the economy back into recession. …

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admin2019-02-01T20:21:27+00:00June 19, 2012|