The Republican Tax Bill’s Small-Business Problem — Most Won’t Benefit From the Special New Rate
Most apparently won’t benefit from it.
The typical small business, whether it’s a sole proprietorship, partnership or limited liability company, doesn’t pay taxes itself, but its owners do as individuals.
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And already about 86% of these so-called pass-through businesses pay no more than 25% under the individual code, the new top rate proposed for small-business income in the tax bill unveiled this week. So they won’t get the legislation’s much-hyped small-business tax cut.
On top of that, the bill makes it very difficult for lawyers, engineers, doctors, consultants and other personal services providers, who make up a good share of small businesses, to qualify for the 25% rate.
More: The Republican tax bill’s small-business problem — most won’t benefit from the special new rate