Obama’s Corporate Framework May Create Double Tax, Camp Says

President Barack Obama’s suggestion that businesses reporting income on individual returns could be taxed more like corporations amounts to a “double tax,” House Ways and Means Chairman Dave Camp said. Camp, a Michigan Republican, made the comments today at a committee hearing in Washington that focused on how closely held businesses should be treated in a U.S. tax code overhaul. These firms pass through their income to the owner’s individual tax return, allowing them to pay taxes on that income at the individual rate instead of the corporate rate. In Obama’s proposed corporate tax revisions, which the administration released on Feb. 22, he said large companies are “increasingly avoiding corporate tax liability by organizing themselves as pass-through businesses.” Republicans maintain that such businesses are often small and should be protected. The tax treatment of these businesses will be an important element of any tax code overhaul in Congress.

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