49 percent of the income Republicans claim as small business already goes to the top 1 percent

[CousinIT]

The Republican tax plan claims to be helping small businesses with a new loophole that’s actually tailor-made for the rich. The loophole is a new 25 percent top tax rate for pass-through businesses. Pass-through businesses are those that retain no earnings and pay no taxes at the business level. Instead, all profits are “passed-through” to the business owners, who then pay their individual income taxes, just like you and me.

This means that while almost all genuine small businesses are pass-throughs, not all pass-throughs are genuine small businesses. For example, pass-through income has exploded in recent decades, and most of this increase is not attributable to mom-and-pop stores, but to hedge funds and law firms and private equity partners. In fact, 49 percent of all pass-through income goes to just the top 1 percent of households. This makes pass-through income one of the most concentrated-at-the-top income categories in the entire economy.

. . .

The people this pass-through loophole helps is wealthy people like President Trump, whose top tax rate on income from more than 500 pass-through businesses would fall from 39.6 to 25 percent.

http://www.epi.org/publication/49-percent-of-the-income-republicans-claim-as-small-business-already-goes-to-the-top-1-percent/

[kimbutgar]

1. They wont believe it because they didnt hear it on faux

[SunSeeker]

2. K & R & bookmarked!