Higher Tax will hurt Honest S-Corporations

Jun 2010

By Karen Cilento — Filed under: Architecture News ,Featured

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President of the American Institute of Architects, George H. Miller, has voiced his concerns over Congress’ efforts to raise taxes on S corporations. Miller states, “In this economic climate, Congress’ effort to raise taxes on small businesses that form S corporations is clearly misguided. Such corporations create jobs and economic growth by reinvesting hard-earned capital.”

Indeed, the proposed heightened tax will hurt honest S-corporations. Small businesses, who are already paying their taxes, will have to lay off workers just to pay this higher tax. This move will inevitably slow down progress and increase unemployment – neither a good move for our economy these days.

However, some businesses wrongly categorize themselves as S-corporations to benefit from the lower tax rates. These firms should identified and their actions reprimanded. Yet, this new tax does not distinguish between honest and dishonest firms, “punishing thousands of honest small businesses that follow the rules,” explained Miller.

From The Washington Post via @AIANational.

Cite:
Cilento , Karen . "Higher Tax will hurt Honest S-Corporations" 30 Jun 2010. ArchDaily. Accessed 25 May 2012. <http://www.archdaily.com/66636>

Comments (17)
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Jered says:

Wow! surprised you posted something that stands against the current administration…good for you archdaily! This is just one of many ‘hidden’ tax strategies that will be used against small businesses all in benefit for the ‘greater good’….architects & employees will suffer no doubt..

# June 30, 2010 at 09:52

Steve says:

Oh, stop whining and pay the damn taxes!

# June 30, 2010 at 11:32

Jonathan says:

Open your eyes and realize the more taxes people pay, the less they will invest.

# June 30, 2010 at 11:41

Open you eyes and realize that no matter how much you pay, you think it’s too much and want to pay less. And yeah, I would like to pay less as well, but it can’t be that way! So stop whining and face what they call… humm, let me see… REALITY!

# June 30, 2010 at 12:12

Open you eyes and realize that no matter how much you pay, you always think it’s too much and want to pay less. And yeah, I would like to pay less as well, but it can’t be that way! So stop whining and face what they call… humm, let me see… REALITY!

# June 30, 2010 at 12:14

mark h. says:

spoken like a true dictator!lol

# June 30, 2010 at 14:12

Yeah, lol… but it’s true! Isn’t it?

# June 30, 2010 at 15:08

It isn’t rocket science to make the following connection: the states that have made the best recovery post recession HAVE THE LOWEST TAXES.

# June 30, 2010 at 16:32

mark h says:

lol no, it’s not true. if you mean it does no good to question whether the taxes are too high, or justified in the first place. remember the boston tea party? America is about individual responsibility and hands off governance. at least that’s how it was intended. its getting harder and harder for individuals to strike out on their own. the higher taxes favor big companies since the start-up costs, regulatory fees, legal upkeep are all a smaller percentage of their operating expenses. if a regulatory filing costs 200 bucks no matter who you are, that favors big established business with big bankroll, not the sole proprietors who need that 200 bucks to make payroll and rent. that’s what im getting at. =)

# June 30, 2010 at 19:15

lord byron says:

easy for you to say. you’re clearly walking through life blind and don’t mind throwing away money for social programs that don’t work, don’t help anybody, and don’t improve the overall condition of civilization. The rest of us actually value what we produce.

go back to your cave.

# July 1, 2010 at 14:30

Utube says:

you all are actually surprised?…I’m surprised you seem so surprised??>>??

# June 30, 2010 at 09:58

Mark says:

Lowering taxes just means your boss makes more money this year.

# June 30, 2010 at 12:09

lowering taxes means more money to spend on hiring and growth of the business. start thinking like an individual business owner because one day that might be you! it will be you who creates jobs, first for your self, then to employees. big gov’t people want you to think like a lifelong subordinate being “cheated” by your higher ups – since they need your consent and vote to take some of your employer’s money and redirect it to you via social services etc. Read Ayn Rand!

# June 30, 2010 at 14:01

You can have the last word on this, because I shouldn’t have started this (nor should have Arch Daily) in the first place. However, a business is not going to hire if the work is not there, no matter how low the taxes are. If the work is there, the company is only going to hire once it’s current staff is squeezed to the breaking point regardless of the current tax level. Big business wants to keep you a lifelong subordinate by letting you believe you are being cheated by “Big Gov’t”. I’ve read Ayn Rand and found it to be utter garbage. Try reading Neil Stevenson (another work of complete fiction) if you want to see what a total privately owned distopia looks like. No governement, no vote, no democracy. Then those higher ups really will have all the power.

# June 30, 2010 at 17:03

i think these ideas are important. you think Frank Lloyd Wright could have dropped out of school and done what he did TODAY? no way because the rules and regulations are challenging. and was he safe? of course. the moment your buildings collapse is the day your career is seriously threatened. same thing with employees: its not in your best interest to beat up your crew because you want to keep and grow good talent. they aren’t slaves after all. and slaves don’t create as well as nicely paid comfortable employees. as far as Rand goes, you should check her out again since she advocates a Democratic Republic, like the founders intended, not anarchy. anarchy favors mob rule. then the individual perishes. so, that’s my last word. good luck out there!

# June 30, 2010 at 19:20

Booh says: