2 ms·
That's not what Ron Johnson is doing at all. The changes in pass through rates are, quite literally, the worst part of the bill. Large businesses (C Corps) pay
by harryh 9y ago
That's not what Ron Johnson is doing at all. The changes in pass through rates are, quite literally, the worst part of the bill.
Large businesses (C Corps) pay corporate tax and then when shareholders profit from their shares (either via dividends or cap gains) they pay individual income taxes.
Small businesses (LLCs and S corps) don't pay corporate taxes but individual shareholders pay individual income taxes like above.
What this bill does (and Johnson is trying to do more of) is create a whole new system for shareholders of LLCs and S Corps so that they don't even pay regular income taxes but a new tax at an even lower rate.
This isn't giving preferential tax treatment to small businesses that corporations already get. It's creating a whole new thing that shouldn't exist in the first place.