Our analysis of the House and Senate tax bills effect on middle-class small business owners
Our analysis of the House and Senate tax bills effect on middle-class small business owners:
We have projected many of our clients’ business taxes for 2018 using the proposed legislation. On average, the House bill reduces income tax very slightly but payroll taxes significantly jump due to the forced choice of two methods to calculate wages vs. pass-through income - Ugly!
The Senate bill actually reduces small business owner taxes by adopting a 23% deduction for pass-through profit (with some limitations).