Small Business Taxes

Reforming the Pass-Through Deduction

Here’s how the new pass-through deduction works and how it can be reformed to be less complex, less prone to abuse, more neutral, and more economically efficient.

Radical Changes to Small Business Taxation in the Works in New York

Three Tax Plans Under Consideration in Missouri

Will Illinois Double Down on High Taxes?

Amending the Illinois constitution and adopting a graduated-rate income tax cannot solve the state’s fundamental problems. Instead, it doubles down on an already uncompetitive tax code.

Governor Dayton’s Budget Proposal: Some Pro-Growth Provisions, but Misses the Mark on Others

The proposal includes some good reforms, including conforming to the federal full expensing provision, but also rolls back some recent positive changes.

Sources of Personal Income, Tax Year 2015

Taxpayers reported $10.4 trillion of total income on their 2015 tax returns. This report breaks down the sources of this income: wages and salaries, business income, investment income, and retirement income.

Oregon’s Chance to Limit a Flaw in the Federal Tax Code

Senator Hass’s proposal to limit the special pass-through deduction in Oregon is the right choice, protecting the state’s budget, while advancing sound tax policy.

Testimony: Idaho Should Consider Decoupling from the Pass-Through Deduction

Testimony: Oregon Should Consider Decoupling From the Pass-Through Deduction

Oregon’s Legislative Revenue Office anticipates a $40 million revenue loss in fiscal year 2019, for one simple reason: absent legislative action to the contrary, Oregon will adopt the new pass-through deduction, while most other states will not.

New Federal Reserve Paper: State Corporate Taxes Hurt Entrepreneurship

For every 1 percentage point increase in a state’s corporate tax rate, employment in start-up firms declines 3.7 percent, according to a recent Federal Reserve study.

Pass-Through Deduction Won’t Flow Through to Most States

For policymakers in most states, the fact that the pass-through deduction doesn’t affect AGI should come as a relief. For those in the six states which use federal taxable income as their starting point for conformity, decoupling from the provision is an entirely viable option.

Are Pass-Through Businesses Treated Fairly Under the Senate Version of the Tax Cuts and Jobs Act?

A more careful look shows that the Senate Tax Cuts and Jobs Act doesn’t put pass-through businesses at a disadvantage compared to C corporations.

The House Takes a Big Step Forward on Tax Reform

The House of Representatives passed the Tax Cuts and Jobs Act by a vote of 227-205. Here is a summary of the major provisions in the final package.

Overview of the Senate’s Amendment to the Tax Cuts and Jobs Act

The Chairman’s Mark of the Senate’s Tax Cuts and Jobs Act includes a number of important changes. Here’s a quick overview of those that matter most.

Eight Important Changes in the Senate Tax Cuts and Jobs Act

The Senate Tax Cuts and Jobs Act includes hundreds of structural reforms to the tax code. Here is a guide to the eight most important changes.

Important Differences Between House and Senate Versions of the Tax Cuts and Jobs Act

This list, though not exhaustive, catalogues the major differences between the House and Senate version of the Tax Cuts and Jobs Act.

Small Pass-Through Businesses Would See Some Benefits Under the House Tax Cuts and Jobs Act

Even with large changes, many in the pass-through community are arguing that small pass-throughs don’t benefit since most or all of their taxable income falls below the 25 percent maximum rate. While correct on the small point, advocates miss the greater tax reform picture. Small pass-through businesses would still benefit from a number of other changes.

Explaining the Pass-Through Income Anti-Abuse Rules in the House Tax Cuts and Jobs Act

Though admittedly complex, the pass-through anti-abuse rules in the Tax Cuts & Jobs Act represent a well-thought-out approach to dealing with this issue.

Eight Important Changes in the House Tax Cuts and Jobs Act

The widely anticipated House Tax Cuts and Jobs Act includes hundreds of structural changes to the tax code. Here are the eight most important provisions in no particular order.

Details of the House Tax Cuts and Jobs Act

The House Tax Cuts and Jobs act would fundamentally reform the U.S. tax code for the first time in over 30 years. Here are all the important details.