tax reform - The S Corporation Association

New Ernst & Young Study on Top Rates

oday, the S Corporation Association released a new study by Ernst & Young focused on the rate debate in Congress and its impact on job creation and business investment.

According to the study, allowing the top rates on individual, business, and investment income to rise starting next year would, over time, result in fewer jobs, lower wages, and less investment. Key documents include:

Ernst & Young Macroeconomic Study on Rate Hikes
Highlights of the E&Y Study
S Corporation Association Press Release

Authored by Dr. Robert Carroll and Gerald Prante of Ernst & Young, the study examines the economic impact of the …

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admin2019-02-01T20:13:17+00:00July 17, 2012|

President Targets S Corps

President Obama announced yesterday his continued support for raising tax rates on Americans earning more than $250,000 ($200,000 for single filers). As the Wall Street Journal reported today, these policies would hit a large number of business owners:

Congress’s Joint Tax Committee -not a conservative outfit – estimates that in 2013 about 940,000 taxpayers will have enough business income to meet Mr. Obama’s tax increase threshold. And of the roughly $1.3 trillion in net business income, about 53% will get hit with the higher tax rates.

New numbers from Ernst & Young reinforce the impact these higher rates will …

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admin2019-02-01T20:18:40+00:00July 10, 2012|

More than Half of Small Business Income Targeted Under Obama Tax Hike

The S Corporation Association today responded to reports that President Obama would press to raise taxes on S corporation owners and other taxpayers earning more than $250,000 a year:

“Pass-through businesses like S corporations employ the majority of private sector workers. The President is proposing to raise taxes on a large number of their employers, putting those jobs at risk. According to the Joint Committee on Taxation, more than half of all pass-through income is taxed at the top two tax rates. Raising taxes on that much economic activity at a time when unemployment is already too high is harmful …

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admin2019-02-01T20:18:46+00:00July 9, 2012|

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|

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|