tax reform - The S Corporation Association

The Gang Falls Short

With less than two weeks to go before the Treasury-announced August 2^nd deadline to raise the debt ceiling, members of Congress are desperate for some sort of plan that will break the current stalemate over what type of deficit reduction should accompany the ceiling increase. So are the financial markets, to judge by their reaction.

This desperation perhaps explains the energy with which members of both parties received the “Gang of Six” plan released Tuesday.

We caution our members not to get too excited. While there are several very positive aspects of the Gang’s plan, this proposal will not be ready to …

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admin2019-02-01T20:48:05+00:00July 21, 2011|

Ryan on S-Corps and Taxes

Earlier this morning, House Budget Committee Chairman Paul Ryan (R-WI) cited from our Ernst & Young study to defend Main Street businesses. We had been in to see Chairman Ryan back during our annual Board meeting. Apparently, our message connected!

As the Chairman notes:

“We don’t think raising tax rates in 2013 is helping the economy today. Not only is the actual rate going to 39.6, when you take the other stuff that was in Obamacare and everything else, the effective marginal tax rate goes to 44.8 percent. Here is the problem: 54 percent of workers in America get their jobs from …

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admin2019-02-01T20:48:05+00:00July 15, 2011|

Tax Notes: Make S-Corps Pay C-Corp Taxes

The drumbeat to impose the double corporate tax on large pass-through businesses grows louder. This time, it’s Martin Sullivan at Tax Notes arguing that larger firms should all be subject to corporate-level taxes. At least that’s the headline. Read the actual article, however, and our impression is a tax-writer at war with his conclusions. Try these lines:

“true tax reform would completely eliminate the double taxation of corporate income.”

“After all, the corporate tax is our worst tax.”

“What should be the dividing line between businesses subject to corporate tax and those that should be exempt? That’s not an easy question …

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admin2019-02-01T20:48:05+00:00June 7, 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|