Tax Reform Proposal Offers Two Options for Passthroughs

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House Ways and Means Committee Chairman Camp is weighing two options for reforming the tax code for passthrough entities: tinker with the law or trash it. Camp unveils a discussion draft of tax reform for small businesses, outlining two options for changing the way passthrough entities are taxed. The committee will take public comment before deciding whether to take an incremental approach or a more ambitious one, Camp tells reporters at a news conference. Camp, who has said he intends to pass tax reform in the committee in 2013, says the changes would ease a burdensome tax system for small businesses, which he says spend 65 percent more on tax compliance than larger businesses. More » … Tax benefits for small businesses continue to have bipartisan support in Congress but also raise questions about which policies are effective and which businesses should qualify, the Congressional Research Service reports.