Dan Hilton 2015-01-12 01:17:12
“The climate has really improved.” That was the greeting I received from Dirk Van Dongen, chief lobbyist for industry partner National Association of Wholesaler-Distributors, shortly after the midterm elections last November. With the recent Republican takeover of the Senate and a strengthened grip in the H ouse, many are hopeful that a more business-friendly environment is coming to town. But on the other side of the coin, now it is time roll up our sleeves and get down to business. A Republican-controlled senate can be a positive thing for the business community and members of ASA. But like many good things, it can come with a hitch. At their respective post-election press conferences, both President Obama and Senate Majority Leader-in waiting Mitch McConnell were quoted as saying corporate tax reform was one area of possible agreement to address. We’ve all heard the anecdotes; America’s corporate tax rate is tops in the world and directly impacts our competitiveness. Furthermore, we remain one of the only nations that taxes a company’s overseas earnings, further complicating but adding to the necessity for such reforms. Tax code reform will impact your business. Corporate-only or comprehensive? In Washington, “comprehensive” is a fickle term. If immigration reform was progressing in Congress, attaching the word comprehensive to the package would be the quickest way to lose support of conservative Republicans. Opponents of creating an easier path to citizenship frequently tie in the comprehensiveness of immigration reform — referred to by many as amnesty. With respect to tax reform, ASA and its members should be all-in on comprehensive tax reform because it would be a combination of the aforementioned corporate reform along with addressing tax rates at the individual level. It is critical to keep in mind businesses that are organized as ESOPs, S corporations, partnerships and sole proprietorships pay at the individual rate. Remember what Willie Sutton supposedly said when asked why he robbed the banks, “Because that’s where the money is.” According to a new book by the Tax Foundation titled “Business in American Illustrated,” C corporations, or Those which we consider multinationals such as GE, Boeing and Coca Cola, are about 30 times larger than individual or pass-through businesses in terms of revenue and they employ more than 50% of the nation’s private-sector workforce. In terms of quantity, these corporations make up only 5% of businesses in America, but 62% of revenues. In 2011, these corporations brought in almost $31 trillion in total business receipts compared to just more than $11 trillion by pass-throughs. Lowering, reforming or flattening the corporate tax code would put those in the individual system at a disadvantage and would result in having to subsidize or pay for the corporate rate reductions. A concern many in Washington share is that the new Senate majority and President Obama will come to a rare agreement to reform taxes for corporations first without getting to individuals until later. In short, reforming our tax code requires addressing not only corporations, but individuals as well. Congress has not accomplished significant bipartisan tax reform since 1986. For good reason, there are millions of stakeholders and billions of dollars on the table.. Today you can count on two hands the number of elected officials in office back then, making this a true once-in-a-generation occurrence. Make no mistake: tax reform will be a monumental lift, but it will require your voice and participation in this process. One surefire way to accomplish this is by coming to Washington on Tax Day and participate in ASA’s Legislative Fly-In April 14 – 15. We hope to see you there! Dan Hilton is director of government affairs for the American Supply Association, representing the PVFPHCP industry in Washington, D.C. For more on the 2014 ASA Legislative Fly-In, visit www.asa.net, or contact Hilton at email@example.com or 703 /328-5234.
Published by SupplyHouseTimes. View All Articles.
This page can be found at http://digital.bnpmedia.com/article/Washington+Update/1904732/241909/article.html.