Economics
Tax Reform Could Open Up a Huge Loophole for the Wealthy
A perk meant for business owners may help a wide variety of affluent Americans cut their tax bills.
EY Says Trump Cuts May Be Tax Push for High Incomes
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In the emergency room, there’s a good chance your doctor isn’t an employee of the hospital. She might be an independent contractor and, for tax purposes, the owner of a small business whose sole purpose is to sell her services as a physician.
That’s one example of a “pass-through business,” now a hot topic in the U.S. tax reform debate. Everything from a giant real estate business to a corner liquor store can be a pass-through, so called because it doesn’t pay taxes itself but instead passes profits on to the owner, who pays taxes based on his or her own individual rate.