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

 

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.