11/14/2013

Democrats are seeking to eliminate some tax breaks claimed by business owners in the effort to reach a budget deal by the Dec. 13 deadline. They include using the S corporation structure to claim income as business profits to avoid payroll taxes, and carried-interest treatment for hedge fund managers and private equity advisers. Sen. Patty Murray, D-Wash., chairwoman of the Senate Budget Committee and the Democrats' lead negotiator, says Republicans need to put some of these options on the table to raise revenue, while Republicans argue that negotiations over tax breaks shouldn't be done piecemeal, but as part of a broader tax code revision.

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