sfbrando

I don't think you know what you are talking about. I am a CPA and there isn't any larger overhead expenses for one owner C-Corps vs. S-Corps. The main difference is that owners/employees of C-Corps usually just take money out by way of wages only. If they also take dividends they have to pay income tax on the dividends on their personal return, but get no deduction on their corporate income tax return. Thus "double taxation" is the result. S-Corps make it simpler to take distributions and make more sense and are more fair and equitable. Most S-Corps take money out in wages and shareholder distributions. The wages need to be reasonable and the shareholder distributions are a distribution of profit of which you pay income tax on, but there is no double taxation since the income flows through to your personal tax return anyway. I don't know what you mean about small number of people at the top of the company get to exempt half their income from taxes that virtually everyone else in the country has to pay. Our income is not exempt in any way. You might want to know your facts before spouting off stuff you don't know.

First of all let me point out that employees who are not business owners do NOT have to pay in the full 15.3% (SS & Medicare) to the government. Only 1/2 of that gets taken out of their paychecks. The other 1/2 is paid by the employer (social security wage base is $106,800 and unlimited for medicare). Also, in most states employees do not have to pay into unemployment. The employer pays into that for them. They also usually get vacation/sick pay and health insurance benefits. A one owner S Corporation has to pay in the full 15.3% on their wages plus $434 into FUTA that he/she cannot use. In addition they have to pay for their own health insurance and obviously no vacation/sick pay. Please do not compare employees to business owners. Employees have NO idea. This HR 4213 bill is another attack on the small businesses probably because the politicians cannot control us since most of us are free thinkers and usually not tied to one party. The S Corporation has been around for 50 plus years and has been a blessing to us small one-owner firms. I pay myself a reasonable wage (what I would expect if I work for someone else in my line of work) and then I usually leave a good chunk of money in the company savings account and take a small amount in shareholder distribution. With this new bill even amounts I don't take out will be subject to SECA. I usually save about $3,000 per year in SECA because of the S Corporation. This might not seem like alot to most people but an extra $3000 to my family seems harsh. Why am I being penalized when bigger firms won't be? Why are they picking on the little guy who works hard?????