tax reform - The S Corporation Association

Senate Defeats S-Corp Tax Hike

Good news for job creators! The Senate just voted against moving forward on legislation that would increase taxes on S corporations by $9 billion. The legislation was opposed by a broad coalition of business groups, led by the S Corporation Association, including the US Chamber of Commerce and the National Federation of Independent Business. A motion to close debate and proceed to the bill was defeated on a party-line vote — 52-45. (Sixty votes are required to end debate in the Senate.)

This is the second time in two years the business community has successfully blocked legislation to increase payroll taxes …

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admin2019-02-01T20:21:27+00:00May 8, 2012|

Keeping Rates the Same

It’s Easter recess here in D.C. and we’ve had a chance to catch up on our reading. Topping the stack was Marty Sullivan’s Tax Notes piece from March 26th. It’s a rebuttal to our tax reform principles letter signed by 45 business groups here in town, so we thought a rebuttal to the rebuttal was in order.

As a reminder, our letter calls on Congress to reform the tax code by adhering to three broad principles: make reform comprehensive, keep the rates low and the same, and continue to reduce the incidence of double taxing corporate income. Marty appears to …

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admin2019-02-01T20:21:28+00:00April 10, 2012|

Administration Offers Corporate Tax Reform

The Administration released its outline for “business” tax reform today. Described by its authors as more than a set of principles but less than a fully-realized plan, the 22-page joint Treasury-White House release raises more questions for us than it answers.

Core to the plan is a reduction in the top corporate tax rate from 35 to 28 percent. Pass-through businesses would not benefit from the rate reduction. Manufacturing businesses would see a further reduction down to 25 percent through the use of a manufacturing deduction. Advanced manufacturing would receive a yet more generous deduction.

To offset the cost of the lower …

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admin2019-02-01T20:21:28+00:00February 22, 2012|

President’s Budget and S Corps

The President’s budget came out today, and despite the fact that it and the many proposals it contains are unlikely to move through Congress, there are a number of items of specific concern to S corporations that are worth a look. You can find the overall budget documents at the OMB website. For S corporations, the items that jump out at us include:

Expiration of current rates for higher income taxpayers.
Imposition of a new “Buffett Tax” on taxpayers earning more than $1 million.
Principles for tax reform.

We’ll get to these items, but first, a note about baselines. One possible area of …

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admin2019-02-01T20:21:28+00:00February 13, 2012|

Wall Street Journal Misleads its Readers

Two weeks ago, the Wall Street Journal ran a front-page piece entitled, “More Firms Enjoy Tax-Free Status.” While you could argue the story itself was less biased than the headline, its overall bent leaves the very strong impression that S corporations and other pass through businesses pay no taxes. The subsequent interview of the author on WSJ Live is even worse:

Author: The vast majority of US businesses essentially don’t have to pay any tax. They are organized as what are called pass-throughs, meaning that there’s no tax paid by the enterprise; instead the tax is paid by the owners …

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admin2019-02-01T20:21:29+00:00January 24, 2012|