HealthSouth had been charging a higher, individual rate for follow-up therapy for patients discharged from its hospitals.
Historically, the corporate tax rate was well below the top individual rate.
And the reason is because small business pays that individual rate.
In this case, you could stay on Cobra at an individual rate, and buy private insurance for the rest of the family.
Cutting the corporate tax rate, accelerating individual rate reductions already enacted and repealing the alternative minimum tax will achieve that without undue impact on the budget.
This income – which earns its moniker by flowing through a separate business, partnership or limited liability company before reaching an individual – is now taxed at the individual rate.
During the 1950s, the corporate rate was 52 percent while the top individual rate was 91 percent; in the 1970s, the corporate rate was 48 percent and the top individual rate was 70 percent.
Thus the maximum tax rate on income earned by S-corporations is the top individual rate of 35 percent.
The Tax Reform Act lowered the corporate rate to 34 percent and reduced the top individual rate to 28 percent.
Martin Anderson, a former policy adviser to President Reagan and an adviser to George W. Bush in his election campaign, said the top priority must be on speeding up individual rate reductions.
MR. BUSH and most Republicans in Congress had been pressing for an acceleration of the individual rate cuts contained in last year's law, as well as a variety of tax cuts for business, including incentives for new investment.
