Legislative Victories for S-CORP

Since its inception, S-CORP has scored numerous legislative victories for America’s closely-held and family-owned businesses.  In the past decade, S-CORP:

• Engineered Senate support to eliminate the Sting Tax!

S-CORP worked with our champions in the United States Senate, including Senators Lincoln (D-Ark) and Hatch (R-UT) to include the repeal of the onerous Sting Tax in the 2005 tax reconciliation bill.  This bill is currently in conference, and the Sting Tax repeal is very much in play. 

Have you been stung by the Sting Tax?  Email us here so your story can help eliminate this abusive tax.  Interested in learning more?  Click Here.   

• Blocked unfair attempts to increase payroll taxes on S corporations! 

It seems some bad ideas never die.  The idea to increase payroll taxes on S Corporation income has been beaten back repeatedly since the Clinton Treasury Department first proposed it back in 1993.  Yet every year, someone in the tax writing community will put this misguided idea forward as the latest plan to reduce the deficit, close the tax gap, and otherwise raise taxes to pay for additional federal spending.   

Since its inception, S-CORP has led the fight in Washington to prevent this massive, unfair tax increase on the S corporation community, mostly recently blocking its inclusion in the 2005 tax reconciliation bill.  Read the history of this important fight.

• Supported S corporation reform and tax relief in the American Jobs Creation Act of 2004!
  
    The American Jobs Creation Act of 2004 was a giant step forward for the S-CORP community
    including numerous S-CORP priorities including:

·         Increasing the S corporation shareholder limit to 100;

·         Members of family treated as 1 shareholder; and 

·         Allowing S corporation banks to have IRA shareholders.

Moreover, the Job Creation Act included numerous other S-CORP friendly provisions, including extending the $100,000 small business expensing limit for two years, providing American manufacturers with much needed rate relief, and much more. Click here for a full description of the Jobs Creation Act.

·   Supported the small business friendly provisions of the Jobs and Growth Act of 2003

      
S CORP supported passage of the Jobs and Growth Act of 2003.  The bill, signed into law on May 28, 2003, reduced marginal tax rates for individuals and S corporations across-the-board, reduced the tax rate on investment income, including S corporation capital gains, and increased the small business expensing limit to $100,000.  Click here to read a full description of the 2003 law.

• Providing key support of the 2001 tax rate relief bill 
  
     Concerted effort assisted Administration and Congressional promoters of the 2001 tax rate relief  bill, enacted in May of 2001, which will reduce S corporation shareholders' tax rates and phase out estate taxes over the next several years.  Click here to view a description of the Chairman's mark of the RELIEF Act of 2001.  Click here to view the Economic Growth and Tax Relief Reconciliation Act of 2001.

·   The elimination of UBIT taxes from S corporation ESOPs

A successful 1997 public affairs/lobbying campaign resulted in key law changes contained in the Taxpayers Relief Act of 1997. Click here to see the Joint Tax Committee's description of this legislation.  Click here to view legislative language of H.R. 2718.

• The S Corporation Reform Act of 1996
  
  Spearheading the promotion and passage of the S Corporation Reform Act of 1996, contained in the Small Business Jobs Protection Act of 1996. The bill allowed S corporations to form ESOPs, to be financial institutions, to grow ownership from 35 to 75 shareholders, and to simplify tax preparation, among other things.  Click here to see a description of the '96 Bill.  Click here to see the provisions in the '96 bill relating to S corporations.