Monday, April 8, 2013

US Debt Reduction Sequester Tax Solution #41: SubS Corp Income Should Be Subject to Payroll Taxes

Presently, SubS Corp Income is not subject to the 15.3% self-employment tax, as are sole proprietorships and partners in a partnership.

Clearly this is a tax loophole that in all fairness needs to be closed.  By using this tax loophole, desperately needed Medicare and Social Security Trust Funds are being robbed. 

In order to lower the US Government Debt, I think it is far better to close this avoidance of payroll taxes by using a SubS Corp legal structure than by reducing Medicare, Medicaid and Social Security Benefits.