corporate-only - The S Corporation Association

Battle Lines on Tax Policy

The President rolled out his latest deficit reduction outline yesterday. As expected, it included several tax recommendations. In sum, the President is calling for an additional $1.5 trillion in tax collections over the next decade, including:

Expire Bush Tax Cuts on High Income Earners ($800 billion)
Cap Itemized Deductions & Exemptions at 28 percent ($400 billion)
Various Loophole Closers ($300 billion)

There are a number of challenges with the list. First, allowing tax provisions already set to expire to, well, expire, doesn’t raise any revenue. It’s already in current law. That $800 billion in savings doesn’t exist.

Second, the President already proposed to use the …

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admin2019-02-01T20:24:45+00:00September 20, 2011|

Pass-Thru Employment Takes Center Stage

Robert Carroll’s study on pass-thru businesses continues to be a centerpiece in the tax policy discussion here in DC.

At yesterday’s Finance Committee hearing on the future of tax rates, Bill Rys from the National Federation of Independent Business did a great job of articulating just how many people work for pass-through businesses and why raising tax rates will hurt their ability to invest and create jobs. As Bill pointed out in his testimony:

Based on 2008 tax data, pass through businesses represented 95 percent of all business entities. These businesses employed a majority – 54 percent - of the total private …

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admin2019-02-01T20:24:45+00:00September 15, 2011|

Chairman Camp Makes the Case for S Corps and Other Pass-Through Businesses

Wednesday’s meeting between House Republicans and the President failed to move the needle on deficit reduction, but it did give the top tax writer in the House an opportunity to deliver a message on tax reform. As Chairman Dave Camp (R-MI) stated after the meeting:

“Tax reform done the right way means more economic growth and more jobs. Any path forward for tax reform must be comprehensive to address both the individual and corporate rates. More than half of all business income is earned by pass through entities - most of which are small businesses. We cannot leave them out in …

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admin2019-02-01T20:48:05+00:00June 3, 2011|

Administration’s Corporate-Only Plan Waiting Behind Debt Ceiling

The Administration appears to be holding back their Corporate-only tax reform plan until budget negotiators can settle on a deal to raise the debt ceiling. The Treasury Secretary is counting on congressional leaders to reach a long-term deal by the current August 2^nd deadline, and then intends to move onto his corporate-only plan prior to the 2012 elections. At a speaking event in New York earlier this week he previewed the essential pitch:

“It’s a very hard thing to do because it will change the relative effective tax rates for different companies, different industries, but it’s an essential thing to do. …

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admin2019-02-01T20:48:05+00:00May 20, 2011|

Business Coalition Letter Opposes Administration’s Corporate-Only Plan

S-CORP and thirty other trade associations sent a letter to the congressional tax-writing committee leaders today stating their opposition to the Administration’s reported corporate-only tax reform plan. States the letter:

As organizations representing millions of closely-held employers across the country, we are writing to express our strong opposition to any tax reform plan that will negatively impact 95 percent of America’s businesses.

Every day, nearly 70 million Americans wake up and go to work at a firm organized as something other than a C corporation. These “flow-through” businesses, structured as S corporations, partnerships, LLCs, or sole proprietorships, contribute more to …

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admin2019-02-01T20:48:05+00:00May 11, 2011|