The party of big business can't even get business taxes right.
Long a supposed champion of American businesses, Republicans in Congress have drafted legislation that shows they don't know business. Their tax bill ignores fairness and fails to recognize an elemental fact. The tax bill reduces the corporate income tax to 20 percent. Meanwhile they have set the tax on flow-through income at 25 percent.
The majority of American businesses are organized as pass-through companies, and they “pass through” the business income to the owner's individual tax rate. Pass through is a shorthand way of saying that the income tax is assessed on the owners of the business rather than on the business itself, as is the case with most large corporations.
Twenty percent for large corporations. 25 percent for small businesses. What is fair about that?
When I first saw this, I was in disbelief — until I learned that this is the No. 1 reason our U.S. Sen. Ron Johnson opposes the bill. These provisions are important for everyone, not simply as a matter of fairness but because small businesses, not large corporations, create the vast majority of new jobs in this country. And small businesses typically create those jobs in this country, not overseas.
Thomas Krajewski, Onalaska