Senate Proposal for Tax Reform Part II: Democrats Seek To End S Coporation Payroll Tax Loophole

As I discussed earlier today, Senate Democrats have proposed two alternative bills that would defer (or eliminate) mandatory spending cuts set to take effect next month while raising additional tax revenue through the removal of "loopholes." In both proposals, one of the loopholes that would meet its end is the preferential payroll tax treatment currently afforded S corporation shareholders.