“...they would back the bill after securing further tax relief for pass-through businesses...”
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I’m having difficulty following this.
Let’s see, “regular” corporations will have their income taxed at 20%. When those “regular” corporations pay dividends to their shareholders that dividend income will AGAIN be taxed at the personal income tax rates (up to 39%). So the dividend income to owners of “regular” corporations is, in essence, TAXED TWICE — with the 2nd tax bite of that apple being up to 39%.
But “pass-through” businesses will have their income ONLY TAXED ONCE and the net effect of the legislation is that the “personal income” from “pass-through entities” will taxed at a rate below 30% max. If that understanding is correct, high income earners from professional entities such as law firm partners are going to make out like bandits compared to individuals who get their income as “employees”. I’m not sure I like such preferential treatment.
Yes, and people like the Clintons will also be paying less on the income they secure from their speeches, book fees, consulting fees etc.