Business-Friendly Enough

Sen. Ron Johnson (Washington Times)

Wisconsin Republican Senator Ron Johnson opposes the current Senate tax proposal: [bold added]

Mr. Johnson said Republican plans prioritize corporations over “pass-through” entities—sole proprietorships, partnerships, limited liability companies and S Corporations—whose owners pay taxes through individual returns and at individual income-tax rates, rather than corporate rates. The Senate plan, like the House plan, proposes to cut the corporate rate from 35% to 20%.

As an owner and part-owner of various pass-through LLCs, your humble blogger is in favor of the bill in its current form though my LLCs won't gain directly. I am also an owner of publicly traded stocks that will benefit from lowered corporate taxes; from personal experience I know many LLC-owners who are in my position.

Furthermore, when a business achieves scale it often is structured with multiple pass-through as well as taxpaying ("C Corporation") entities, so many C-Corp beneficiaries are S/LLC/partnership owners as well. It is exceedingly rare to find a strictly pass-through owner who won't benefit from a lowering of C-Corp taxes.

The bill is business-friendly enough, and I find it hard to believe that Senator Johnson is letting the perfect be the enemy of the good.