AAIA Opposes C-Corporation-Only Tax Reform
April 2, 2013—The Automotive Aftermarket Industry Association (AAIA) has opposed a proposed tax reform that focuses solely on C corporations, or corporations that are taxed separately from its owners.
The AAIA joined more than 35 trade associations in signing a letter to the leadership of the Senate Finance Committee and the House Ways and Means Committee stating opposition to the reform, which the AAIA says ignores pass-through businesses and individual taxpayers.
The letter points out that 70 million Americans are employed by firms that are organized as S corporations, partnerships, LLCs or sole proprietorships, and are representative of 95 percent of U.S. businesses.
“Despite these contributions, recent press reports suggest that the administration and some members of Congress support budget-neutral legislation that would reform the tax code for C corporations only,” the letter stated. “The proposal would be to reduce the tax code for C corporations and offset those lower rates by eliminating or reducing tax deductions and credits used by all businesses.”
The participating associations urged Congress to pursue comprehensive tax reform that recognizes all employers.