Tax Cuts for Small-Business Owners? It’s Complicated - The New York Times

                 Tax Cuts for Small-Business Owners? It’s Complicated - The New York Times:

                 

The House Republicans’ tax overhaul bill calls for reducing the tax burden on people who own small businesses like Steve’s Bike Shop — not giving breaks to professional athletes like Stephen Curry, the N.B.A. All-Star.

The rewrite of the tax code, which the House passed on Thursday, proposed a 25 percent tax rate for small businesses for owners who report their profits as income on their tax returns. It was slightly higher than the 20 percent rate for corporations but a break from the top individual rate of 39.6 percent.

In the end, though, the bill might not help the fictional Steve or the real Steph, who were named in the bill. But Mr. Curry’s wife, Ayesha, a TV personality who receives royalties and licensing fees from businesses she represents, could get a tax break. The reason is that the proposals for taxing small-business owners — whose companies are called pass-through entities, because the income passes through to their personal tax returns — hinge on the ownership of those entities. more

               

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