The Washington Wire Archive - The S Corporation Association

Our Chairman’s 2018 New Year Message

Dear S-CORP Member:

Well that was a roller coaster ride. In just ten weeks, Congress went from being nowhere on tax reform to seeing a massive rewrite of the Tax Code enacted into law. It was a remarkable accomplishment whose benefits are already being felt in the job and equity markets. The stock markets like the new tax bill.

But does the new tax bill like Main Street? That’s a little more complicated.

Thanks to the efforts of your S-Corp team and allies, the final version of the bill is a dramatic improvement over earlier drafts – the new pass-through deduction is larger, …

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admin2019-02-06T18:49:36+00:00January 12, 2018|

S-Corp Thanks its Champions

With tax reform passing the Congress in the next few hours, S-Corp sent a note of thanks to those members of the Senate – Johnson, Daines and Inhofe – who stood up for Main Street businesses at a most critical time. As the letter states:

Thank you for your outstanding leadership to promote tax fairness for thousands of American Main Street and family businesses throughout consideration of H.R. 1, the Tax Cuts and Jobs Act.

Because of your efforts, the final conference agreement included a number of improvements, including provisions directly aimed at addressing …

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admin2019-02-06T18:49:36+00:00December 20, 2017|

S-Corp Comments to Tax Reform Conferees

General: Neither the House nor the Senate bills live up to the promise of the 25-percent pass-through rate proposed in the Framework. The Senate bill doesn’t even have a pass-through rate. Pass-through businesses employ the majority of workers and earn the majority of business income. They represent approximately one-third of the entire American economy. Yet neither the House nor the Senate bills devote anything close to these percentages for tax relief towards the pass-through sector. The Senate bill in particular comes up short, even with the improvements made on the Senate floor. To fix this, conferees should devote a proportional …

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admin2019-01-31T19:17:40+00:00December 4, 2017|

Pass-Through Community Letter to Finance Committee

Yesterday 42 Main Street trade groups, including the National Beer Wholesalers Association, the Independent Community Bankers of America, the Associated Builders and Contractors, and the S Corporation Association sent a letter to Chairman Hatch calling for tax reform that treats Main Street businesses fairly. As the letter states:

While the bill’s 17.4 percent deduction is a welcome effort to lower rates on all pass-through businesses, the provision is both temporary and too low. The deduction’s 50-percent payroll limitation would leave behind pass-through businesses that do not add direct payroll at a one-to-one ratio as they grow while blocking …

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admin2019-01-31T22:45:31+00:00November 28, 2017|

Flaws in the Tax Foundation’s Review

The Tax Foundation is out with a new write-up called, “Are Pass-Through Businesses Treated Fairly Under the Senate Version of the Tax Cuts and Jobs Act?” that has a chart showing the top rate applying to S corporations in the Senate bill is 34.94 percent while the C corporation rate is 39.04 percent. Is that correct? No. Not even close.

Here are the concerns we have with the Tax Foundation Write-Up:

Deferral: The Tax Foundation analysis assumes that the full second layer of corporate tax is paid, and paid immediately. This is simply not true. First, there are some …

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admin2019-01-31T22:45:42+00:00November 20, 2017|