The Washington Wire Archive - The S Corporation Association

Tax Reform Plan Forthcoming

After months of meetings, the so-called Big Six are preparing to release some sort of summary of their work the weekend of the 23^rd. The Ways & Means Republicans have a retreat that weekend, and Chairman Brady intends to use the time to sell the plan. The idea is to get the Committee R’s comfortable, and then move on to the broader membership and the public.

What’s in the plan? Recent conflicting accounts over rates suggests it’s still a moving target, but there are a few areas that seem firm.

For starters, we expect it will include a combination of specifics, options, …

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admin2019-01-31T22:48:48+00:00September 15, 2017|

S-Corp Comments on 2704

Monday was the close of the comment period for Treasury Notice 2017-38, and the S Corporation Association joined several other trade groups in submitting our final comments on the pending Section 2704 rules, including our study highlighting the threat these rules pose to family businesses and their employees.

This comment period is the latest in a long saga and we hope it marks the beginning of the end. To recap:

August, 2016 – Treasury issues Notice 2017-38 targeting proposed rules under Section 2704;
November, 2016 – The official comment …

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admin2019-01-31T22:48:48+00:00August 14, 2017|

Letter Leaves Pass Through Employers Behind

For seven years, your S-Corp team has repeated the same mantra for tax reform – tax all income once, tax it at similar reasonable rates, and then leave it alone. If Congress wants to make the tax code simpler and encourage more job creation, this is the place to start.

A competing view is one where the largest corporations pay very low rates while everybody else – individuals and pass through businesses alike – pay rates significantly higher. Recall that pass through businesses are taxed via the individual tax rates of their owners. The idea is that while US corporations can …

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admin2019-01-31T22:48:48+00:00August 1, 2017|

Tax Reform Statement & Pass Through Taxes

Just in time for the August recess, the House, Senate and the White House released a joint statement yesterday on the status of their tax reform talks and their plans moving forward. You can read the statement here. From our perspective, here are the key points:

“While we have debated the pro-growth benefits of border adjustability, we appreciate that there are many unknowns associated with it and have decided to set this policy aside in order to advance tax reform.”

A primary purpose of the statement was to pivot the tax conversation away from the House Blueprint and the …

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admin2021-08-16T14:02:33+00:00August 1, 2017|

S-Corp Submits Comments

The S Corporation Association submitted the following comments to the Senate Finance Committee today as part of the Committee’s request for input:

The United States is unique among developed countries in the emphasis it places on pass-through business structures – S corporations, partnerships (including limited liability companies), and sole proprietorships. Pass-through businesses make up 95 percent of all U.S. businesses, they employ the majority of private sector workers, and they contribute the majority of business income to our GDP.

This reliance on pass-through businesses is not an accident or a byproduct of other priorities. Rather, it was done purposefully by successive Congresses …

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admin2019-01-31T22:48:48+00:00July 17, 2017|