Washington, D.C. – The locally basedAssociation of Wholesaler-Distributors (NAW) joined the National Federation of Independent Business, the National Association of Manufacturers and the U.S. Chamber of Commerce to create the Tax Relief Coalition (TRC). This coalition was an alliance geared to advocate the passage of President Bush’s tax cut package. The group, founded in late February, grew to include more than 1,000 members, representing 1.7 million businesses – the largest legislative coalition in recent memory.
Central to the tax relief package, was the repeal of the death (estate) tax, and a reduction in the top marginal personal tax rate, which will substantially increase after-tax earnings by Subchapter S corporations. Subchapter S corporations are extremely numerous in the small- and medium-size business community, and they use individual tax rates to calculate their Federal corporate tax liabilities.