Small Business Owners Take Note!
You have to read this article and you need to keep an eye on this. This is a huge item and will significantly affect anyone who is currently taking "reasonable" compensation from an S Corporation. When you read between the lines, what this actually proposes is the full self-employment taxation of all earnings in an S Corporation. The Congress has been looking for a way to raise more revenue and this may very well be the start. I will keep everyone in the loop as this moves forward. I would also encourage everyone to contact Rep. Peter Stark from California to state your objection to this legislation.
Lawmaker Introduces Bill to Close Newt Gingrich Medicare Tax Loophole : Accounting Today