Actually I am in the same boat, which is the only reason I know anything about the taxation of them. S-Corp owners receive all profits or losses at the end of the year in direct proportion to their ownership stake via pass through. So the company itself doesn't pay taxes (which is a higher rate). Another thing that I didn't realize before was that S Corps are the most popular corporate structure in America.
So the CEO of an S Corp that employs any amount of people will surely be affected by raises in income tax. Now in a perfect world, every employee would pull their weight and there would be no workplace inefficiencies. Unfortunately in real life that just isn't the case. So when you take out of the pocket of these CEOs, is it really crazy to think that they won't start looking for these inefficiencies in their workforce to drop dead weight as to increase net profits to negate the effects of their tax bill. At the end of the day, they will bring home the same amount of money. The government will make a little more money, but will now have to support someone else who is out of work. So all this ends up with a net negative impact economically.
This is fully debatable. I am just playing devil's advocate.
Most of the conversation in this thread is pure theory and belief. It's not black and white, right or wrong. When it comes to these kinds of conversations I really support pieces of both sides, but typically hop on a side for debates sake. I honestly like hearing intelligent responses against what I currently believe.