Instead, the income that their owners earn is taxed at individual income tax rates that are currently as high as 39.6 percent. Mr. Trump’s proposal brings both the corporate rate and the pass-through rate to 15 percent. PhotoOne potential fix under consideration: a tax increase for individuals who file as pass-throughs so they pay tax on par with personal-income tax rates. The total tax bill would be the same as the proposed top personal income tax rate. The pass-through issue is another area of disagreement between the White House and House Republicans, who proposed a higher top pass-through tax rate of 25 percent in “A Better Way,” the legislative blueprint they issued last summer.

Source: New York Times May 09, 2017 23:02 UTC