If Kansas is any indication, then this GOP Tax Scam is underestimating the upcoming deficits

[LonePirate]

The centerpiece of the Kansas tax cuts which Brownback rammed through several years ago was a rate reduction on pass through (LLC) income. This spurred a couple hundred thousand businesses and professionals to reorganize and classify their income as pass through income.

A similar reorganization on the federal level across the land will occur if this Tax Scam passes. Current projected deficits of $150B-$200B a year are probably just one half or even one third of what they will actually be. Almost anyone who files a Schedule C on their individual taxes will be told by their tax advisers to reorganize their business as an LLC so that their Schedule C income becomes pass through income which will be taxed at a lower rate.

Have there been any estimates on how many Schedule C businesses or self-employed filers will switch to LLCs to take advantage of this scam? If people thought the carried interest loophole was a scam and a farce, they have seen nothing like this upcoming budget buster. We are in for a world of hurt if this bill passes.

[Voltaire2]

1. my understanding is that the llc change only applies to rich people

i.e. many self employed workers will not be able to use the provision. - "The 20% deduction would be prohibited for anyone in a service business" as per http://money.cnn.com/2017/12/15/news/economy/gop-tax-plan-details/index.html

Just another example of the stunning level of corruption and just plain meanness in this farce.

[The_Casual_Observer]

2. Did anyone actually think they were going to give actual hard working people in the

"gig economy" a break?

[onethatcares]

3. not just the gig economy

but barbers, carpenters, roofers, and the myriad small time/one owner/two employee businesses are gonna get screwed bigtime. But so many of them think the dumpster is a good guy and taxes are too high/

[Wounded Bear]

4. I'm sure all of the money laundering will help the real estate bubble pump up, too...