S corporations and partnerships have become a central pillar of U.S. economic strength and it would be ill-advised to inadvertently shoulder them with a disproportionate share of the tax burden.
St. Charles, IL (PRWEB) June 21, 2010
On Tuesday, June 22, 2010 the Manufacturers Alliance/MAPI Report: A Closer Look at the Business Tax Burden: C-Corps, S-Corps, and the Impact of the Federal Budget's 2011 Tax Proposals will be released. The press conference will be held at the National Press Club in the Zenger Room in Washington D.C. at 2:00 p.m.
Jeremy A. Leonard, Manufacturers Alliance/MAPI Economic Consultant and report author and Ronald D. Bullock, Bison Gear & Engineering Chairman and report sponsor will detail the effect of some of the major provisions in the current Administration's proposed budget plan, affecting taxes paid by American businesses, specifically manufacturers. The report will show the competing proposal of Sen. Ron Wyden (D-OR) and Sen. Judd Gregg (R-NH) and how their proposal has a more balanced impact on the manufacturing sector with a more favorable impact on economic growth. Also included, is the examination of the incidence of the 2011 budget's tax proposal and the Wyden-Gregg bill on pass-through businesses which include almost 4 million S corporations and more than 3 million partnerships. The report details too, how pass-through businesses in the manufacturing sector could see their tax bills increase by an average of 14 percent.
Ron Bullock notes, "S corporations and partnerships have become a central pillar of U.S. economic strength and it would be ill-advised to inadvertently shoulder them with a disproportionate share of the tax burden."
The corporate tax rate is unchanged in this proposal, but proposals to broaden the base will increase the aggregate business tax bill by more than $350 billion over the next 10 years.
"We found that the Administration's proposal results in an increase in the federal deficit of $100 billion relative to the baseline," Jeremy Leonard said, "while the Wyden-Gregg bill adds to GDP growth and employment and reduces the deficit by $300 billion relative to the baseline."
The report finds too, that a more effective option to reduce the deficit can be found in the Bipartisan Tax Fairness and Simplification Act of 2010 (S. 3018) cosponsored by Senators Wyden and Gregg, which would simplify the personal income tax system and reduce the corporate rate from 35 percent to 24 percent. It also holds personal income tax rates near current levels instead of raising them, which will aid S corporations. Simulations in the report indicate that it would create nearly 2 million jobs on a net basis and add an extra $500 billion to the GDP by 2015.
"The dramatic increase in business profits that would result would reduce the deficit relative to both the 2011 budget and the pre-budget baseline," Leonard said. "Smart tax policy can advance the twin goals of sustaining the competitive edge of American businesses and help keep the government's fiscal house in some state of order."
If you are interested in attending this informative conference RSVP to Jim Engelhardt at 703-647-5126 or jengelhardt (at) mapi (dot) net.
About Manufacturers Alliance/MAPI
Established in 1933, this non-profit organization engages in economic and policy research, continuing professional education and allied activities. The Alliance's corporate membership includes U.S. based and international companies in manufacturing and related business services. Manufacturers Alliance/MAPI promotes the technological and economic progress of the United States through studies and seminars on changing economic, legal, and regulatory conditions affecting industry. mapi.net
About Bison Gear & Engineering Corp.
Celebrating its 50th Anniversary, Bison Gear & Engineering Corp. designs and manufactures fractional horsepower electric motors, gearmotors and gear reducers used in industrial and commercial OEM applications worldwide. Bison's strong engineering tradition, based on Robusticity™ principles, offers products with up to twice as much torque in the same package size as competitors. Bison's St. Charles, Illinois integrated production facility manufactures gearmotors and reducers in parallel shaft and right angle configurations, as well as AC and DC electric motors, for applications where dependability and long lifetimes are important.bisongear.com