Although Mr. Biden campaigned on limiting the break, the deduction went untouched in the first $2.4 trillion worth of net tax increases that were detailed by the Biden administration on Friday. It gives a deduction worth 20% of income—basically a 20% rate cut—to business income that shows up on individual tax returns. During the 2020 campaign, Mr. Biden proposed phasing out the break for business owners with incomes above $400,000. As president, when he released his infrastructure and family-spending plans, he detailed trillions of dollars of tax increases, including some that weren’t in his campaign proposals. The administration is relying on corporate tax increases to fund the infrastructure plan and tax increases on individuals’ capital gains and ordinary income to pay for family and education spending.

Source: Mint May 29, 2021 16:16 UTC