More Companies are Exempt from U.S. Income Tax

Sixty-nine percent U.S. companies were organized as pass-throughs, or nontaxable organizations, in 2008, compared with 24% in 1986, according to data from the Internal Revenue Service. Members of Congress and the business community disagree on whether the exemption should change. Increasingly, traditional for-profit companies are at a competitive disadvantage against pass-throughs. The Wall Street Journal