From my response to the same point OP made at Diehard's forum:........................I presume you are referring to the Obama Administrations recent release of their 25 page "The President's Framework for Business Tax Reform" on Feb. 22 ?If so, your selling might be a bit premature.Reading through this, it seems to be a synopsis of ideas from the administration on how Congress might modify the existing tax code so as to reorient corporate incentives to be competitive in the global economy....or at least that's how I read it. These are some of the highlites I see on the Administration's recommendations...1. Reduce the deductibility of corporate interest expense.2. Reduce max corporate tax rate from 35% to 28% (25% for domestic manufacturing)3. Eliminate business tax loopholes, such as 'last-in-first-out' investory accounting, repealing energy company tax preferences such as depletion allowance and intangible drilling costs, favorable tax treatment of life insurance in forms of compensation and others.4. Taxing 'carried interest' as ordinary income5. Eliminate certain accelerated depreciation on many corporate aquisition of capital assets, such as corporate aircraft.6. Expand and make permanent the R&E (Research and Experimentation) Tax Credit.7. Extend, consolidate and enhance tax incentives for clean energy production.8. Strengthen international tax system to keep taxable profits in the US and apply minimum US tax to overseas profits of US companies.9. Simplify tax filing for small businesses.This synopsis does mention that there is a disparity in taxes paid by C-Corporations vs. pass through business entities, such as REITs, Partnerships, S-Corps and LLC/proprietorship pass-throughs, but really doesn't say much else about this. But in a similar report from the G.W. Bush advisory panel on Federal Tax Reform in 2005, did suggest that certain private partnerships and S-Corps be subject to Fed. income tax, but that those created by statute...presumably for a specified economic purpose, namely, MLPs, REITs and RICs (mutual funds) be exempt.The way this reads, it looks like the administration is going after those who have figured out how to navigate around the tax code by making business decisions primarily for tax reduction and self-enrichment reasons rather than business profitability reasons. I also read quite a bit of politics in this, with statements like "it will not increase the deficit by one dime", which sounds much like some recent campaign rhetoric. But that's just my interpretation...others views may differ.Here's the urlhttp://www.treasury.gov/resource-center/tax-policy/Documents...BruceM
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