The S-Corporation Association of America has published a report showing that a proposed tax package would hit private companies twice as hard as public C corporations.
The proposal would impose marginal rates of 46.4 percent or more on private companies while taxing public corporations as little as 26.5 percent. “No business structure can survive such an imbalance, so the net effect would be to encourage further economic consolidation away from Main Street and toward Wall Street,” the association said.
According to a new study from EY, privately held companies employ 96.7 million workers, representing 77.4 percent of the non-government workforce. As a result, taxing private companies more than their public counterparts would accelerate the economic decline in numerous regions of the country, the association said. The full report is available here.
To combat those proposed tax increases, the America’s Job Creators for a Strong Recovery coalition is asking businesses to share their real-life stories about how changes to the tax code would impact their businesses. Those interested in sharing their experience may email Jade West, chief government relations officer for the National Association of Wholesaler-Distributors, at email@example.com.
Additionally, the coalition is asking business executives to write a letter to the editor or submit an op-ed opposing the proposed tax increases to their local newspapers.