Open AccessThe Persistent Appeal of S Corporations: How Tax Cuts Might Not Help Small Corporations
Author(s) -
Manas Kumar
Publication year - 2018
Publication title -
michigan business and entrepreneurial law review
Language(s) - English
Resource type - Journals
eISSN - 2375-7558
pISSN - 2375-7523
DOI - 10.36639/mbelr.8.1.persistent
Subject(s) - appeal , internal revenue , tax reform , business , law and economics , tax avoidance , indirect tax , value added tax , tax credit , ad valorem tax , direct tax , context (archaeology) , corporation , public economics , economics , finance , law , political science , marketing , paleontology , biology , service (business)
This Note will first review the tax preferences for entity choice under the old tax regime for the sake of context. It will then compare the tax benefits of electing to C and S corporation status under the regime created by the Act. The Note will conclude with an analysis of the factors sustaining the tax appeal of pass-through firms for lower-earning businesses with special attention to the largely unaltered state of tax law and business entity choice. It proposes that the Act did not sufficiently reform the Internal Revenue Code to close up the tax advantage that high-earning corporations incur with a Subchapter S election.