Posted on 12/31/2017 2:27:17 PM PST by spintreebob
The tax plan that President Trump signed into law last week creates one of the largest new loopholes in decades: a 20% deduction for “pass-through income.”
Pass-through income is business income that is immediately “passed through” to the owner’s personal tax return, thereby avoiding the corporate income tax. Proponents of the Republican tax plan claim the cut benefits small businesses, but that’s a red herring. In reality, the new deduction disproportionately benefits the wealthy, penalizes workers and, in part because it is so complex, will ultimately reward those who can afford the best tax advice.
The new deduction could have profound effects on the American workplace over time. It essentially requires employees — most workers — to choose between benefits such as employer-based healthcare and the deduction. By creating a strong incentive for employees to give up these benefits and become independent contractors, it could further erode job, health and retirement security.
(Excerpt) Read more at latimes.com ...
Penalizes workers? Workers whom presumably pay personal income tax as well. How is that a loop hole - a rhetorical one manufactured by lefty propaganda machines?
Cool! How do I take advantage of this?
Beware comrades. The Republicans are going to kill the proletariat.
The pass through promotes capitalist profits at the expense of the workers who’s sweat actually earned them.
The deserving workers get no pass through
“Where’s my Obamaphone!?!”
It’s called an S-Corp.
If you own a small business talk to a good tax man about it.
This is nonsense! We have commercial property. We are not a corporate entity. Our net income from our business comes over to the main page of our tax return from Schedule E. Other kinds of small sole-proprietorships do likewise on Schedule C. Nothing will change for us except in the area of Schedule A deductions where there will be limitations on non-Federal tax amounts that can be claimed.
So what? If it’s immediately passed thru then it’s taxed to the owner on his personal return.
Looks like the number of startups will take off like a rocket, spurring investment.
A “loophole” occurs whenever anyone is allowed to keep money they earned.
And therefore there is no double tax on the same income. Which was the point.
That doesn’t sound like a “loophole”.
Those who live their lives in envy and jealousy about the other guy having something they don’t have, or getting a better break or a better deal than they have end up bitter and miserable and wasting their days - like democrats.
It is not a loophole, it is the law. I hate it when lefty buttwipes call laws loopholes.
Sounds like a tax code adaptation to the “Gig Economy”. People like Uber drivers will benefit from this. Is the “Gig Economy” really a good thing? Well, that’s for the market of millions of individuals to decide.
Exactly.
A message to the buttwipes Lily Batchelder and David Kamin, IT”S NOT YOUR FREAKING MONEY!!!!!!!!!!!!
That used to be the law. The new law taxes only 80% of what's passed through. The other 20% is not taxed at any level, corporate or individual.
You've got the essence of the complaint, right >>>>> there.
Loophole? Or is it really a design feature?
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