Filling the Gap Pass-Through Businesses and Tax Reform

[McFurd]

Miliken Institute Review - Eric Toder - Among the many things you learned from the presidential campaign of 2016 – but probably never really wanted to know – was a whole new vocabulary related to ways in which the wealthy legally avoid taxes. Yes, you've suffered through "carried interest," "tax inversion" and "like-kind exchange." And I know it's cruel to introduce yet another term to this witch's brew. But be patient; this one's worth a few minutes of head-scratching. Once a limited taxing method used almost exclusively for small or closely held businesses, "pass-through" treatment is now so common that one can no longer consider a business tax reform that is limited only to corporations. And tax reform proposals that seek to match corporate rate cuts by providing special reduced individual tax rates for owners of pass-through businesses threaten to open up a major new vehicle for tax avoidance. Read more @ http://www.milkenreview.org/articles/fi ... tax-reform