The Washington Wire - The S Corporation Association

Talking Taxes in a Truck Episode 50: The War on Pass-Throughs

Is pass-through taxation a giant loophole that steals money from the Federal government? A growing chorus Academics and journalists seem to think so. Does this new tact reflect an underlying reality or is it just the latest set of flawed talking points?

To find out, we’re joined by longtime ally George Callas, founder of the Callas Strategy Group and a DC tax policy veteran. George and Brian identify the questionable assumptions, outdated data, and misleading narratives underlying these claims. They also revisit the 1986 tax reform and explain why the rise of pass-through businesses are the solution to income inequality, not …

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admin2026-10-19T19:16:09+00:00October 19, 2026|

Two Maps, One Reality

Earlier we highlighted research showing how well the United States is doing compared to Canada. Starting in a similar place forty years ago, today’s American worker earns more and benefits from significantly higher levels of business investment. It’s a gap that is large and growing.

Today we’ve got another geography-based point to make, courtesy of the Wall Street Journal and economists Eric Zwick and Owen Zidar (both of whom spent their formative years getting called last during roll call). Their book “The Everywhere Millionaire” reviewed America’s growing ranks of job creators and discovered the American Dream is alive and …

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admin2026-10-14T20:43:19+00:00October 14, 2026|

Old Study, Same Bad Conclusions

A decade ago, Treasury published a paper on effective tax rates that was worth a hard look. As our write-up showed, the headlines generated by the paper were not justified by its actual findings.

We’re republishing that response today because the original Treasury paper is back in the news – it’s cited in a recent NYU-Hamilton paper on pass-through businesses and two of its authors also co-authored the “Everywhere Millionaire,” a book which – as we explained the other day – is generating similarly misguided news coverage today.

Here’s what we wrote in 2015.

New Treasury Effective Rate …

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admin2026-10-09T19:08:35+00:00October 9, 2026|

You’re Going the Wrong Way!

A new Tax Notes piece from University of Michigan law professor Reuven Avi-Yonah raises an important question about proposals to force large private businesses to become C corporations: What exactly are we trying to accomplish here? As Avi-Yonah notes:

This fiscal illusion [that corporations bear the cost of the entity-level corporate tax] allows politicians to raise taxes without justifying increases to the voters who pay them. That lack of accountability violates the principle of no taxation without representation, a foundational concept found in the Declaration of Independence and underpinning the Constitution’s origination clause.²⁰

Given the corporate tax’s complexity and the …

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admin2026-10-08T21:09:08+00:00October 8, 2026|

SCOTUS Punts on CTA Challenge

The Supreme Court today declined to hear two challenges to the Corporate Transparency Act, including NSBA v. Bessent, leaving in place an Eleventh Circuit ruling that upheld the law last year. The Court also denied review in Texas Top Cop Shop v. Blanche. S-Corp had backed both challenges, and earlier this year helped lead a broad Main Street coalition urging SCOTUS to take them up.

Today’s news is unfortunate, but the fight over the CTA is far from finished. Numerous legal challenges to the law remain pending, meaning the constitutional questions surrounding the CTA are likely to make …

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admin2026-10-05T20:52:36+00:00October 5, 2026|