Main Street Employers Are the Backbone of the American Economy And Deserve Tax Parity
We believe that Main Street Employers are the backbone of the American economy—employing the majority of U.S. workers, and comprising 95% of all U.S. businesses. By organizing as S corporations and other pass-through businesses, they help keep family businesses in the family, and make America more innovative and competitive. The American economy would simply not be the same without them. But to keep these businesses and their workers dynamic and growing, we need a federal tax code that restores parity between corporations and pass-through businesses. What We Believe
Now that historic tax reform is done, it’s time for the Congress, the Treasury, and the IRS to work through how to implement the details of the new law. For Main Street employers, the stakes couldn’t be higher. As the dust settles, it is becoming clear that there is unfinished business when it comes to tax parity for American employers…
The Parity for Main Street Employers coalition is committed to improving the new law by focusing on three key areas. First, we will work with the Congress and the Administration to ensure the new deduction applies broadly, and benefits bone fide Main Street businesses with real payrolls and real profits…Second, we will seek to restore parity by allowing pass-through businesses to fully deduct their state and local income taxes, just like all C corporations…Third, we will begin work now with Main Street allies to make permanent a workable and sustainable pass-through deduction…
While the corporate reforms in the new tax law are positive and pro-growth, the treatment of pass- through businesses still remain a work in progress. We need a tax system where employers on Main Street have tax parity with those traded on Wall Street. The three steps outlined above will help move us closer to that important goal.
Main Street Employers Group Launches Tax Reform Implementation Effort
Chris Smith Named Executive Director
Focus on Need for Tax Parity for Pass-Through Businesses
Parity for Main Street Employers
Feb. 21, 2018
Today the Parity for Main Street Employers (PMSE) coalition, comprised of trade groups representing American Main Street businesses, named Chris Smith as its new Executive Director. Smith is a Washington public affairs veteran and a former Chief of Staff for both the U.S. Treasury Department and the House Ways and Means Committee.
“Chris’s expertise and extensive experience will bring a whole new dimension to the PMSE effort,” said PMSE Steering Committee Chairman Brian Reardon. “His appointment marks a new phase for PMSE’s mission to inform policymakers on the value of pass-through businesses and the need for tax parity between Main Street employers and corporations.”
“I am excited by this new role to highlight the important contribution of Main Street employers to jobs and growth across America,” said Smith. “Pass-throughs are a unique American innovation, making it possible for businesses of all shapes and sizes to start, grow, and thrive. They are essential to keeping family businesses in the family.”
Read the full press release here.
The Tax Break That Doctors and Plumbers Both Will Miss
Rules around key deduction for many small firms has high earners, experts puzzled; ‘As clear as mud’
The Wall Street Journal
By Ruth Simon
Updated Jan. 19, 2018 9:44 a.m. ET
The owner of a successful chain of tanning salons should qualify for a new tax deduction, but someone who makes the same amount from a group of dermatology clinics won’t.
A high-earning architect can generally claim that same tax break, but the designer who collects a big fee for working on the building’s interior probably can’t. A chef who owns her restaurant can also expect to pay less, but that may not be true if she is a celebrity chef.
Tax experts and accountants are scratching their heads over these and other quirks in how the new federal tax law treats high-income owners of so-called pass-through businesses, which are firms that pay tax through individual, not corporate, returns.
Read the full article here.