Republicans are favoring established big businesses at the expense of smaller and independent businesses. In essence they are protecting the already successful from those who only dream of being as successful. Combine the loss of other deductions being eliminated under the tax reform proposal and pass-through filers will find that their big tax cut is not so big after all.
"One rate for thee, but another for me".
From the story here:
The bill would lower the top rate for income from "pass-through" businesses from 39.6 percent to 25 percent. These businesses, which include some small businesses, otherwise have their income taxed through the individual code on their owners' returns. But NFIB [National Federation of Independent Business] says that most small businesses wouldn't qualify for the lower rate because of the way the new rate is structured.
Additionally, the bill as a default position would not allow income from personal services businesses, such as law and accounting firms, to be eligible for the 25-percent rate.
