Paul L. Caron

Tuesday, May 3, 2011

Obama Mulls Ending Pass-Through Treatment of LLCs, Partnerships & S Corps

The Hill, Trade Group: Administration Wants to Expand Corporate Tax Umbrella:

A trade association is concerned that the Obama administration is working on a tax reform plan that would make more businesses pay taxes as corporations. An executive at the National Association of Publicly Traded Partnerships recently signaled that the group had received information indicating that the administration wanted large so-called pass-through entities — businesses that pay taxes through the individual code — to be subject to corporate taxation.

“Treasury Department staff are working on a tax reform proposal that reportedly would include corporation taxation of any pass-through entity with gross receipts of $50 million or more,” Mary Lyman, NAPTP’s executive director, wrote in a message to group members that was obtained by The Hill. 

See also Reuters, U.S. Mulls Making More Firms Pay Corporate Tax. Prior TaxProf Blog coverage:

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Once the door is opened with larger businesses, it wouldn't be long until it was applied to every mom-and-pop Sub-S.

Posted by: Woody | May 3, 2011 6:16:04 PM

There will be a windfall for those of use who do consulting and law,...but...does Washington really think all of these business are just going to keep status quo and pay more tax?

Posted by: save_the_rustbelt | May 3, 2011 11:31:41 AM