Tax Reform Blueprint Expected to Include 25% Tax Rate for Pass-Through Entities
Posted on Sep 26, 2017 in News, Pass-through Taxation
The GOP tax reform framework is expected to include a new 25% tax rate for “pass-through” businesses, so named because profits and losses transfer directly to the entity’s owners. Income earned through pass-through businesses is currently taxed at individual income rates as high as 39.6%. President Trump is scheduled to announce his tax reform plan, which will also...
Cohn Calls for Sub-23% Corporate Tax Rate
Posted on Aug 7, 2017 in News, Pass-through Taxation
White House economic advisor Gary Cohn stated that the US must reduce the tax rate for corporations and pass-through entities below 23%. He indicated such a rate is necessary to encourage domestic corporations to keep their profits in the US by competing with corporate tax rates offered by most member countries of the Organisation for Economic Co-operation and Development (OECD). ...
Ways and Means Committee Hears Testimony on Simplifying the Broken Tax Code
Posted on Jul 21, 2017 in Pass-through Taxation, Uncategorized
On Wednesday July 19th, the House Ways and Means Tax Policy Subcommittee, led by Subcommittee Chairman Peter Roskam, held a hearing on tax reform, titled “How Tax Reform Will Simplify Our Broken Tax Code and Help Individual Families.” The hearing focused on individual tax reform. Subcommittee Chairman Roskam, in his opening statement, touted the introduction of a postcard-sized ...
House Ways and Means Committee Plans to Permit Interest Deductions for Small Businesses
Posted on Jul 17, 2017 in News, Pass-through Taxation
Rep. Peter Roskam, the Chairman of the Subcommittee on Tax Policy for the House Ways and Means Committee, has commented that they are “actively working” to exempt small businesses from the provision contemplated by the House Republican Blueprint that would deny deductions for net interest expense. The Chairman noted that they are sensitive to those who have no access to capital except...
Treasury Secretary Mnuchin Says Pass-through Rate Cut Not for the Wealthy
Posted on Jun 2, 2017 in News, Pass-through Taxation
On May 18, Treasury Secretary Mnuchin attempted to assuage fears that the Trump tax plan will favor the wealthy. Trump’s tax reform outline proposes a 15% tax rate on business income, including income of individuals derived from pass-through entities, which is currently subject to a top marginal rate of 39.6%. While the outline includes few details, some commentators have expressed...