The S-Corp payroll tax issue is back in play. According to the Associated Press and others, Senate Democrats are planning to raise taxes on S corporation shareholders by $6 billion to offset the cost of extending low interest rates for student loans. According the AP:
Democrats are considering trying to make it harder for owners of so-called S corporations to avoid paying Social Security and Medicare payroll taxes on some of their earnings, said a Senate Democratic aide speaking on condition of anonymity to reveal an emerging party strategy.
Though decisions have not been finalized, the proposal would affect such companies with …