Stewart Web Design currently operates an unincorporated partnership with 75 employees. The partners are contemplating organizing as a corporation. How might each of the following actions affect the firm's decision to incorporate?

a. Congress is considering a tax bill that would reduce individual tax rates but increase corporate tax rates.

b. Congress is considering a bill that would extend the coverage of a large number of environmental and labor regulations to now include companies that have more than 50 employees. Presently, companies with fewer than 200 employees are excluded from these regulations.