The House proposal will hit small businesses that pay taxes through the individual code
especially hard. They’ll pay the higher individual rates, including a new 3.8% surtax on
small business income, and they’ll pay on more of their income because the Democratic
proposal eliminates the 20% deduction on qualified business income.
That deduction was designed to equalize the tax burden for passthrough and Subchapter
S companies with corporations. Now it will vanish for individual business owners who
make more than $400,000. This will mean less hiring and fewer raises for the employees
of these firms.
The House proposal will hit small businesses that pay taxes through the individual code
especially hard. They’ll pay the higher individual rates, including a new 3.8% surtax on
small business income, and they’ll pay on more of their income because the Democratic
proposal eliminates the 20% deduction on qualified business income.
That deduction was designed to equalize the tax burden for passthrough and Subchapter
S companies with corporations. Now it will vanish for individual business owners who
make more than $400,000. This will mean less hiring and fewer raises for the employees
of these firms.
Holy crap, that is steep. In socialist Sweden it's 21,4%. What the Social democratic parties of Europe have learned over the years is to not kill the Golden Geese. Private business is the source of all excess. Better to tax wages and consumption. Most money end up there if it is to be used. Why limit your county's companies' competitiveness unnecessarily?
This plan of yours only make sense if it is meant to be destructive towards small business. Large businesses can avoid corporate taxes.
An nescis, mi fili, quantilla prudentia mundus regatur? - Axel Oxenstierna
Nie lügen die Menschen so viel wie nach einer Jagd, während eines Krieges oder vor Wahlen. - Otto von Bismarck
