As Congress Discusses Tax Hikes, Report Highlights Importance Of Pass Through Firms

As U.S. lawmakers consider significant taxes increases on pass-through businesses, the S-Corp Association and EY have released a new report that explains the broad and positive economic impact these companies have on the U.S. economy.

The study, which is available here with supplementary materials, outlines how many Americans are employed by individually- and family-owned businesses in each of the country’s 435 congressional districts.

According to the report:

• Pass-through businesses, including S corporations, partnerships, and sole proprietorships, employ 62 percent of the U.S. workforce;
• Private companies (pass-through businesses plus private C corporations) employ 80 percent of U.S. workers;
• For every worker employed by a public C corporation (27 million), there are more than four employed by a privately-held business (113 million);
• Of the 435 total congressional districts in the United States, private companies are responsible for 80 percent or more of total employment in 316 of them; and
• Public companies employ the majority of workers (more than 50 percent) in just one Congressional district.

MSCI opposes efforts to increase taxes on these important companies. Member company employees who are interested in opposing new tax levies can make their voices heard by using this link from the National Association of Manufacturers.