camp - The S Corporation Association

Corporate-Only Tax Reform Still a Bad Idea

Today, President Obama is announcing a repackaging of the corporate tax reform proposal he put forward back in 2012. Based on the White House fact sheet, the plan is a restatement of his 2012 plan coupled with a call to raise “one-time” revenues to pay for new spending.

To recap the 2012 plan, the President proposed to:

Cut the C corporation top tax rate to 28 percent;
Reduce the top rate on C corporation manufacturers to 25 percent;
Eliminate tax deductions, preferences and credits used by C corporations and pass-through businesses alike to offset the lower C corporation rates; and
Increase expensing limits …

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admin2019-02-01T20:08:24+00:00July 30, 2013|

Pass-Through Reform Issues

A couple of recent publications have highlighted the negative consequences of “corporate-only” tax reform, including a paper put out by Grant Thornton last month that focused on the challenges faced by businesses structured as S corporations, partnerships and sole proprietorships.

The paper, entitled “Business Equivalency Rate: Fairness for Pass-through Businesses” gets right to the heart of the matter in the first couple paragraphs:

Grant Thornton supports tax reform aimed at lowering effective business rates in order to promote global competitiveness for U.S. businesses. Grant Thornton believes that competitive business tax rates are critical for spurring business investment and job creation. We …

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admin2019-02-01T20:08:24+00:00June 21, 2013|

S-CORP Study in the News

As our Washington Wire readers know, S-CORP released a ground-breaking study on Tuesday by Bob Carroll and Gerald Prante from Ernst & Young. The study quantifies the economic footprint of flow-through businesses for jobs and investment as well measures the impact of corporate-only, revenue neutral tax reform would have on them. Employing more than half of the private workforce (69 million jobs), the study finds that flow-through businesses are essential to the U.S. economy. S corporations specifically employ one out of four private sector workers (31 million jobs).

The study also finds that the existence of flow-through businesses results in higher …

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admin2019-02-01T20:48:06+00:00April 14, 2011|