What Did the GOP’s Tax Plan Revamp Actually Do for Small Businesses?
The new tax plan is a jolt for business, and not just corporate giants. Small businesses and other ‘pass-through’ entities are also benefiting.
In an article from Dallas News, author Tom Benning writes, “And while Republicans are staking that high-dollar tax cut on helping smaller businesses — with Jenkins, among others, planning to invest in facilities and hire more workers — the overall impact remains murky for many individual owners and the economy at large”.
In the article, Benning discusses:
- Businesses as ‘pass-throughs’
- Not all pass-throughs are small businesses
- Pass-through businesses now earn more net income than C-corps
Benning continues, “One restriction, for instance, focuses on businesses where the ‘principal asset’ is the ‘reputation or skill of one or more of its employees or owners’. That definition has sent business owners, financial planners and accountants scrambling for clarity on what exactly it means”. What benefits from the tax plan do will your small business see?
To read more, see the full article from Tom Benning in Dallas News.