Latest from the Blog
Main Street Supports New Taxpayer Protection Legislation
The Main Street Employers Coalition joined with over 40 national organizations in support of H.R. 23, the Family and Small Business Taxpayer Protection Act. The bill would rescind billions in questionable funding enacted in 2022 by the previous congress which expanded the Internal Revenue Service’s (IRS) audit enforcement activities, while doing little to improve woefully inadequate taxpayer service. To access a copy of the letter, please click here. Read More
S-CORP Podcast on Heightened Interest in the Employee Retention Credit
What’s the real story behind all these firms offering a big payday through the Employee Retention Credit? The S Corporation Association’s latest podcast, featuring veteran tax practitioner Lynn Mucenski-Keck, has all the answers. The episode is available at the link below, or through your favorite podcast app: Talking Taxes in a Truck Episode 24: “I’m Worried About Everything” Read More
ENABLERS Act Opposed by 75+ Trade Associations
Today, the Main Street Employers Coalition joined with dozens of its trade association allies to oppose the ENABLERS Act, legislation that would put some 30 million law-abiding small businesses in the crosshairs of federal law enforcement. At its core, the ENABLERS Act relies on criminals, including the lawyers and other financial professionals who assist them, to voluntarily provide an accurate picture of their activities to Treasury. As the letter... Read More
Main Street Asks Congress to Reject the Inflation Reduction Act
Today, the Main Street Employers Coalition joined with more than 70 trade associations in opposing the Inflation Reduction Act. A letter sent to lawmakers highlighted the various tax provisions that are harmful to the small and family-owned business community, and points out that now is simply not the time to be raising taxes on these employers. The letter, which can be accessed by clicking here, reads: The undersigned organizations... Read More
MSEC: The Inflation Reduction Act Fails to Address the Challenges Facing Main Street
“The Main Street Employers Coalition – comprised of national trade groups representing individually and family-owned businesses employing millions of Americans in every state – believes the “Inflation Reduction Act” would fail to address the major challenges confronting Main Street today: high inflation, a slow economy, and a tight labor market. “Recent NFIB member surveys make clear that inflation is the number one concern for Main Street businesses right now.... Read More
Main Street Unites Against Senate Democrats’ Tax Rate Hike
The Main Street Employers Coalition joined with more than 190 business organizations, representing millions of Main Street businesses and tens of millions of American workers, to oppose Senate Democrats effort to raise tax rates on individually and family-owned businesses. The latest proposal includes a 3.8 percent tax rate hike on the active income of 1 million businesses struggling with high inflation and looming recession fears. The letter makes it... Read More
Statement from the MSEC Opposing Inflationary Tax Hikes on Individually & Family Owned Businesses
Main Street Opposes Inflationary Tax Hikes on Individually & Family-Owned Businesses “It’s the kind of thing you’d do to start a recession, not prevent one.” WASHINGTON, D.C. (July 11, 2022) – The Main Street Employers Coalition—comprised of national trade groups representing individually and family-owned businesses employing millions of Americans in every state and district—released the following statement on a Democratic plan to raise tax rates on individually and family-owned businesses: “We... Read More
Inflation, Taxes, and Family Businesses – What do Voters Really Think?
Our allies at the S Corporation Association recently held a webinar to highlight the results of its new national survey. David Winston, whose research and polling firm conducted the survey, was on hand to break down the results and explain how voters feel about inflation, the Build Back Better Act, the current state of the economy, and their potential impact on November’s elections. As David made clear, the polling... Read More
Main Street Businesses Deserve Tax Parity With American Corporations
Now that historic tax reform is done, it’s time for Congress, the Treasury Department and the IRS to work through the details of implementing 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…
Read the full op-ed by PMSE ED Chris Smith in The Hill
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…
Read the full post by clicking here.
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
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…
Read more by clicking here.
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.
WSJ Op-Ed: Ending the One-Two Corporate Tax Punch
Jason Furman is right about the ‘stupid’ policy on overseas income. Domestic policy also isn’t so bright.
Read the WSJ Op-Ed By S-Corp’s Brian Reardon and Tom Nichols by clicking here.
An Overview of Pass-through Businesses in the United States
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…
Read more by clicking here.