The Obama administration announced a working plan to cap the gross receipts of an S Corporation at $50 million. This is important, because an S Corp is a so-called pass through entity, meaning the entity does not pay any tax. Under this proposal if a business generates over $50 million in revenue, it would have to be a C Corporation, meaning it would pay tax.
This is likely to be a key component in any tax reform for the US's corporate tax system which does not cost the US Government a significant amount of tax revenue.
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