Attack on S. Corps – Take Us Off the Menu

There’s a saying on Capitol Hill that if you’re not at the table, you’ll end up on the menu – meaning the chopping block.  Lately it seems that the only menu option Congress is considering is how much more that can be squeezed from small businesses.

Congress put itself in a quandary in how to “pay-for” or offset the cost of extending the 2009 expired tax provisions and is now proposing that S Corporations pick up the tab.

The Senate and the House of Representatives have already passed their respective 2009 tax extenders legislation to date.  However, the recent log-jam in moving the bill towards the President’s desk is because billions in revenue raisers (offsets) for the legislation were used for the new healthcare law.

Therefore, Congress needs to fill the gap.  And now lawmakers are eyeing a new tax on the 4.5 million S Corporation owners across the country.  The S Corporation Association of America reports that the proposal “would apply payroll taxes to all the service-related income of active shareholders of S corporations primarily engaged in service businesses.”

Ok, let’s get this straight:  The bill Congress penned to provide “relief” to business and individuals will now be paid-for by taxing small businesses?  Apparently even being at the table to support the 2009 tax extenders legislation doesn’t keep small businesses out of the line fire either.  What gives?

Stay tuned – can’t wait to see what Congress serves up for dessert.

This entry was posted in The Economy and tagged ,

One Comment

  1. Martin Walgenbach
    Posted April 29, 2010 at 1:23 pm | Permalink

    Wow! I have owned a small busines for the last 10 years we are having a hard enough time paying all the taxes already.I just do not understand how our government can not see our struggles. We have had as many as 45 men and women workig her for the last 10 years how about a break for once! My father a farmer passed away last fall so my brother and I have taken over the family farm. It is crazy the government help that farm receives from the milking operation to the corn ad soybeans. Why cant our small businnes receive some of the breaks like our family farms out there get!

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