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Senior Democrat Proposes Cap on Trump-Era Business Deduction

  • Change to ‘pass-through’ deduction could raise billions
  • Wyden plan may face political headwinds from small businesses
Ron Wyden speaks with members of the media at the U.S. Capitol in Washington, D.C. on July 15.
Ron Wyden speaks with members of the media at the U.S. Capitol in Washington, D.C. on July 15.Photographer: Al Drago/Bloomberg

Senate Finance Committee Chairman Ron Wyden has drafted legislation that would overhaul a major part of the 2017 tax overhaul that Republicans billed as a boon to small businesses, and Democrats have criticized as benefiting wealthy business owners.

The bill would expand eligibility to types of businesses not currently eligible for the “pass-through” deduction created by the 2017 law, like lawyers, accountants, or doctors making above certain income thresholds.