The Washington Wire - The S Corporation Association

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|

BIG (Built-In Gains) Day, Continued

Building on the oral testimony of Congressman Dave Reichert (R-WA) at the member’s hearing on tax extenders held by the Ways and Means Revenues subcommittee, Congressman Ron Kind (D-WI) also weighed in to support extending built-in gains relief this year.

An original author of the S Corporation Modernization Act, Kind, in his written comments to the subcommittee writes:

A provision of chief importance is the provision reducing the holding period for Built-In Gains from 10 years to five years for those small businesses known as S corporations. This provision allows our business community to create jobs in the United States. …

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admin2019-02-01T20:21:27+00:00May 22, 2012|

Game On!

This morning, Ways and Means Committee Chairman Dave Camp announced that the House would act this fall, prior to the November elections, to extend current tax rates while outlining a process whereby the Committee would consider broad, comprehensive reforms to the tax code in 2013. This is obviously very welcome news to S-Corps and other job creators! Here’s what he had to say:

I can firmly say our goal is: One, block massive, job-killing tax increases; and, two, enact - not just pass - comprehensive tax reform. And, there is strong support to use the expiration of the 2010 compromise …

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admin2019-02-01T20:21:27+00:00May 17, 2012|