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 ...
No, it just encourages existing businesses to restructure as S-Corps rather than C Corps.
There is no double taxation of pass-through entities-- that's why they're called "pass-through".
Yes. Which is why they’ve got to be talking about entities that are not a pass thru.
Ok.
Grab this article up and send it to Steavy. Let him save money under Trump!
Grab this article up and send it to Steavy. Let him save money under Trump!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.