This is the bill that the press keeps saying raises taxes on investment managers.
According to my CPA, the bill in question does more than that.
It creates a distinction for service based corporations with less than X shareholders. Those corporations will be required to pay soc-security taxes on all dividends as if they are wages.
The end effect is that S-corps for small service businesses will see a tax increase of ~13% (employer + employee side of FICA).
Granted, most s-corps take some percentage of profits as wages to ward off the IRS, but many of them use dividends as their primary income in order to avoid the huge taxes on soc-security and medicare.
What gauls me, beyond the tax increase, is that it specifically targets small biz people who use their brains for profit. They don’t target brick and mortar businesses. They don’t target large law firms, accounting firms, or consulting firms.
They target those of us with no lobbying group that have won life’s lottery and are capable of using our intelligence to eek out a living.
Correct. The policy is to destroy all commerce except for that which contributes to the comfort and satiation of the Chosen One and his regime.