Thursday, May 13, 2010

Stop Payroll Tax Hikes on S Corporations – Act Now!

Architecture firms across the countryare facing difficult economic times. The AIA is working relentlessly to make sure that Congress is doing everything to help small businesses, not hurt them.

However, it has come to our attention that the House Ways and Means Committee and the Senate Finance Committee are considering moving forward a proposal that would significantly increase the payroll taxes paid by S corporation shareholders in the services sector. Details of the proposal have not been released, but some provisions under consideration have the potential to have a great impact on the many AIA members whose companies are registered as S corporations.
The AIA has joined with other associations to oppose this harmful provision – but Congress needs to hear from you!

We understand that the  proposal may expand the application of payroll taxes to active shareholders of S corporations primarily engaged in services.  The tax would apply to capital investments, including human capital activities like skills training.

Not only will such a proposal  make the tax code even more complex, it will also blur the line between income from labor and income from capital. And, most importantly, it unfairly targets small business - potentially yours - which are the key to the nation's economic recovery and revitalization.

The only way members of Congress will know about the damaging impacts of this proposal is if they hear from you. Contact your members of Congress TODAY and urge them to oppose any proposal to increase payroll taxes paid by S corporation shareholders.

Thank you for your action on behalf of the profession.


Christine McEntee
Executive Vice President & CEO
The American Institute of Architects

1 comment:

  1. thanks for posting this... however, the link logs me in as you (will wright). the link from the email i received on this logs other people in as me. is there a link that will allow someone to log in on their own? thank you!