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S corporations will pay the highest effective tax rate in 2013 at 31.6 percent, compared to 29.4 percent for partnerships, 17.8 percent for C corporations and 15.1 percent for sole proprietorships, according to a study by the National Federation of independent Business and the S Corporation Association. Additionally, the construction industry pays the highest effective tax rate in the country because 80 percent of construction firms are pass-through entities, which negatively impacts hiring and other investment plans, according to a study by the Tax Foundation.

In 2010, the net income of pass-through businesses comprised 54 percent of all net business income. Between 1980 and 2010, the total number of pass-through businesses nearly tripled from roughly 10.9 million to 30.3 million, generating more stable net business than C corporations, according to the Tax Foundation study.

The Coalition for Fair Effective Tax Rates and the Reforming America‚Äôs Taxes Equitable Coalition—which collectively represent large corporations, small businesses and large retailers—support the efforts of Sen. Max Baucus (D-Mont.) and Rep. Dave Camp (R-Mich.) for comprehensive tax reform that would lower individual and corporate rates, as well as eliminate distorting tax preferences.

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