There's a 20% deduction that can be taken for the pass-through income ... if the pass-through income is below a threshold: http://www.cpapracticeadvisor.com/new

There's a 20% deduction that can be taken for the pass-through income ... if the pass-through income is below a threshold: http://www.cpapracticeadvisor.com/news/12389903/2018-tax-reform-pass-through-income-deduction-more-complex-than-thought http://www.cpapracticeadvisor.com/news/12389903/2018-tax-ref... So for some earning beyond a certain income threshold, yeah, they will get taxed a lot more. Interestingly, I think I saw that engineering and architecture services are exempt.