Senate Tax Chairman Takes Aim at Small Business Tax Deduction in new Tax Increase Legislation
Today, Senator Ron Wyden (D-OR), Chairman of the tax writing Senate Finance Committee, introduced a bill to roll back the 20 percent tax deduction for all pass-through businesses, also known as Section 199A. This tax deduction was created as part of the Tax Cuts and Jobs Act to help bring tax rates closer to parity between C-corps and pass-through entities like LLCs, partnerships, and S-corps. With the 20% deduction a small business would pay a top marginal tax rate of 29.6 percent instead of the personal income tax rate of 37 percent.
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