Parity for Main Street Employers
Today, PMSE released an analysis by EY of the Tax Cut and Jobs Act’s effect on the taxation of pass-through businesses, with a focus on S corporations. The EY study found that even for businesses getting a full 20-percent deduction, the tax rate on pass-throughs is still higher than for the average C corp. This is especially true after the deduction expires in 2026. That’s why it is essential that the deduction applies as broadly as possible, and that Congress makes the deduction permanent. A copy of the full EY study can be found here.