Corporate Tax Reform — How it Affects Small Businesses

The Obama Administration’s proposal to lower the corporate tax rate from 35 percent to 28 percent and eliminate deductions for certain industries is not receiving rave reviews. The International Franchise Association, IFA, says this may negatively impact the more than 80 percent of franchise business owners who are pass-through entities such as S-corporations or LLCs and file their business income on their personal income tax return. Jay Perron, Vice President Government Affairs and Public Policy at the IFA breaks down the numbers for us.