Outlook for S-Corps.

Democrats want to make upper-incomer owners of S-Corps. pay self-employment tax on their share of profits if 75% (or more) of the corps. gross income is attributable to the services of 3 or fewer shareholders.  This won’t pass in 2012 but will certainly be looked at in 2013 and beyond. 

Tax law writers are willing to accept tax increases that are used to reduce tax rates.  Congress is rumbling about changing the rules related to S-Corps and partnerships with gross receipts > $50 million.
Any changes would only be made as part of a larger overhaul to help lower corporate tax rates. 
This is bad news to the owners of small S corporations.

Stay tuned!!!