Can Main Street Businesses Just Convert? No!

If “corporate-only” advocates have their way and the corporate tax rate is reduced, should pass-through businesses just switch to C status to access the lower rates?   Would that shift improve the tax code and how we treat closely-held businesses?  The answer to both questions is an emphatic no…

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WSJ Op-Ed: Family Businesses Deserve a Tax Break

The U.S. is unique in its prevalence of small and family-owned businesses. S corporations and other pass-throughs employ the majority of workers and are the foundation of thousands of local economies, ensuring that the benefits of economic growth aren’t concentrated in a few financial centers…

Read the full op-ed by S Corporation Association President Brian Reardon by clicking here.

Pass-through Businesses: Data and Policy

Key Findings

  • The majority of companies in the United States are pass-through businesses. These businesses are not subject to the corporate income tax; instead, their income is reported on their owners’ tax returns and subject to the individual income tax.

  • Over the past thirty years, the pass-through business sector has expanded significantly. Pass-through businesses now earn more net income than traditional C corporations and employ the majority of the private-sector workforce…

 

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2016 Main Street Employers Principles Final Letter

Dear Chairmen and Ranking Members:

 

As Congress debates tax reform to make American businesses more competitive, the undersigned organizations representing employers organized as S corporations, partnerships and sole proprietorships offer the following three principles to help guide your efforts…

Read the full letter by clicking here.

 

An Overview of Pass-through Businesses in the United States

Key Findings

  • Pass-through business income is taxed on the business owners’ tax returns through the individual income tax code.

  • Pass-through business income faces marginal tax rates that exceed 50 percent in some U.S. states.

  • Pass-through businesses face only one layer of tax on their profits compared to the double taxation faced by C corporations…

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