TaxVox: Pass-through entities

The TCJA’s Pass-Through Deduction Was Misguided From the Beginning

August 15, 2018 –

The Tax Cuts and Jobs Act’s (TCJA) special 20 percent individual income tax deduction for pass-through businesses such as partnerships and sole proprietorships was misguided—and...

Business Taxes

Treasury’s New Pass-Through Rules Double Down On The Deduction’s Regressivity

August 14, 2018 –

The Tax Cuts and Jobs Act (TCJA) contains a special 20-percent individual income tax deduction for owners of pass-through businesses that was always going to...

Indexing Capital Gains via Regulations is Still a Bad Idea

July 31, 2018 –

The Trump Administration reportedly is thinking about using its executive authority to redefine capital gains so only returns from the sale of assets in excess...

Business Taxes

Eliminate The Deduction For Qualified Business Income And Require Most Firms To Be Taxed As Pass-Throughs

June 4, 2018 –

The most problematic provision of the Tax Cuts and Jobs Act (TCJA) may be its 20 percent deduction for qualified business income (QBI) of owners...

1986 RIP: Different Tax Rates for Different Income Sources

March 16, 2018 –

The 2017 Tax Cuts and Jobs Act (TCJA) was the most far-reaching tax legislation since the Tax Reform Act of 1986 (TRA86). It also put...

Navigating The TCJA’s Pass-Through Deduction

February 1, 2018 –

The Tax Cuts and Jobs Act (TCJA) creates a new tax deduction of up to 20 percent of income from partnerships, sole proprietorships, and other...

Business Taxes

The Senate’s Tax Bill Would Cut Taxes Three Times More For Business Owners Than Workers

December 13, 2017 –

The Senate’s Tax Cuts and Jobs Act (TCJA) could reduce taxes by nearly three times as much for business owners in 2019 as for people...

Business Taxes

Who Owns Pass-Through Businesses, And Who Would Benefit From Trump’s Plan To Cut Their Taxes?

August 25, 2016 –

Donald Trump’s proposal to cut the tax rate to 15 percent for pass-through businesses such as partnerships and S corporations would overwhelmingly benefit high-income taxpayers...

Business Taxes

Pass-Through Firms Report $800 Billion in Net Income, Can’t Be Ignored in Business Tax Reform

October 2, 2014 –

Washington is going through another one of its periodic calls for business tax reform. But new research by my Tax Policy Center colleague Joe...