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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: Selectric II who wrote (27900)	10/8/2004 10:35:11 AM
From: redfish	Respond to of 173976

The S corp is basically an alternative to a partnership ... LLC has made it less relevant. The IRS threw in the towel on entity classification during Clinton years as new entities kept getting created like LLPs. For small business now you can choose whatever taxation regime you prefer. C corp income gets taxed twice only if the business is so profitable that the money can't be paid out to the owner as reasonable compensation, and IRS forces you to treat it as a dividend, for which there is no offsetting corporate deduction. Corporate integration (reducing the double tax on dividends) is the sensible thing to do but too politically hot to accomplish in full.

To: Selectric II who wrote (27900)	10/9/2004 8:39:46 AM
From: jttmab	Read Replies (1) \| Respond to of 173976

Did you know that small businesses employ 60% of the US workforce, and account for 60% of all new job creation? I think Bush just said it was 70% of all new job creation, but I won't quibble. But we've lowered the top end tax rate and we've had the only Adminstration since Herbert Hoover that has had a net loss of jobs. What are these small businesses doing with their windfall? If you look twiddle around with the A and B tables from the Bureau of Labor Statistics, you find that there has been two sectors with increases in jobs. Farm labor [which is a good thing as we have 3 million illegals crossing the border...these could very well be some of your S-corporations] and Government employment [Which is a good thing as all conservatives are in favor of a bigger government.] Then there's all the little motels and restaurants around the country [S-corporations] that have their illegals cleaning rooms and washing dishes. All the landscaping companies [S-Corporations] with their employees from Central America. Bush hasn't even produced enough jobs to support the illegals coming into the country, let alone the 150,000 Americans that enter the job market every month. jttmab