8/8/2018

BUSINESS/TAXES/TREASURY/TRUMP AS PRESIDENT/TRUMP PEOPLE: “The U.S. Treasury on Wednesday [8-8-18] proposed tax regulations for a new 20 percent income tax deduction for owners of businesses organized as pass-through entities, including rules to prevent the measure from becoming a tax loophole for wealthy Americans..The regulations are intended to provide everything pass-through owners need to comply with the Republican Tax Cuts and Jobs Act, a sweeping overhaul of the U.S. tax code that President Donald Trump signed into law in December. About 30 million U.S. businesses, including many small Mom and Pop’ firms, are organized as pass-through entities, according to the nonpartisan Tax Foundation think tank. Rather than operating like corporations with shareholders, as many large companies do, these businesses pass profits through to their owners as personal income…Trump’s tax overhaul provided permanent tax relief to corporations, which saw their tax rate slashed from 35 percent to 21 percent and an end to U.S. taxes on much of their foreign profits. Pass-through owners got only temporary relief under the law’s individual tax provisions, which are due to expire after 2025. The deduction is currently set to cost the Treasury $415 billion in tax revenues over the next decade.”

David Morgan, “U.S. Treasury proposes tax rules on pass-through businesses,” Reuters, August 8, 2018 7:11 am