Republican leaders continue to court support among rank-and-file senators for their tax legislation, with the possibility of a vote on proceeding to the measure today. The Budget Committee yesterday approved the bill (S. 1) on a party-line 12 to 11 vote. Budget committee member Bob Corker (R-Tenn.) reached an agreement on broad outline for a trigger provision that would create automatic tax increases if the measure doesn’t spur enough economic growth.
Ron Johnson (R-Wis.), another Budget panel member, voted for the bill based on a commitment there would be a fix for the way pass-through businesses would be treated.
Under the Senate tax legislation, businesses organized as S-Corporations and LLCs (also known as “pass through” companies because the tax liability on the profits passes through to the owners) would be subject to a significantly higher effective tax rate than C-Corporations, placing them at a substantial competitive disadvantage. In fact, many S-Corporations would actually be faced with a tax increase if the Senate bill were to become law.
ISSA is working to address this inequitable tax treatment of pass-through businesses in the Senate legislation, but we need your immediate help and support.
It is imperative that ISSA members, especially those structured as an S-Corp or LLC, contact their Senators immediately and urge them to provide equitable tax treatment for pass through businesses under the Senate tax bill.
Please call or email your Senators today!
You can reach your Senators through the Capitol switchboard at 202-225-3121. Once connected to your Senator’s office, ask to speak to the staff person who handles tax reform.
You can also contact your Senators by email through their websites at which can be accessed through www.senate.gov.
In communicating with your Senators on the inequities of the proposed tax treatment of pass-through businesses, please feel free to use the talking points posted here.