Must like during the Great Depression, Congress is forced to innovated.
Now, these changes do not reduce taxes. They merely make the law simpler.
In theory, all special corporate tax breaks are gone in exchange for a lower
tax rate at the cost of no special tax credits. European companies have told Congress that the higher US tax rate, makes the US attractive.
We need jobs. So, like during the Great Depression, our Government is taking an action.
A rate of about 25% , which equals other nations’ rate which is about 25 percent. The battle is going to be over the rate and foreign operations of American businesses.
Small business (where 70% of new jobs are created), gets nothing. The Federal Tax rate of a a small business owner including his SE taxes, is about 40%.
Thus, small business may want to consider adding a “C corporation” to their planning. Besides having the lower tax rate, C-corporations can also have ESOP.. a great tax planning tool or a super pension plan for those business owners over age 55.