The excuse for the new deduction from income passed through defined business entities was said to compensate for a radical reduction in C-corporation tax. Shareholders who take dividends are in effect taxed twice, once at the corporate level and then at the personal level. So-called pass-through income is taxed whether retained or paid out, so now a percentage of that will not be taxable up to a limit, and a provision for game-playing is made after that limit is reached. True parity would eliminate corporate taxation altogether, leaving only the personal income tax. Income retained to be employed for growth would not be taxed. The current change actually increases inequity by disfavoring employees and encouraging them to become fake “self-employed” capitalists doing the same work, and by benefiting wealthy beneficial owners who do not need the taxation deduction from income passed through to them. In any case, the problem is the deficit, so the Hogs will attempt to reduce the welfare of 90-percent of the population, providing them with temporary scraps to avert immediate rebellion until the Boars take over.
David Arthur Walters 2017 CE