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Baucus: Taxing Some Passthroughs as Corporations May Be Key for Reform
From Daily Tax Report
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Senate Finance Chairman Baucus says that taxing large passthrough entities as if they were corporations may be a necessary part of any corporate tax reform effort. To get the corporate tax rate down to 26 percent—as many tax experts have recommended—would require that all business tax expenditures be repealed, including deferral, and the research and development tax credit. Eliminating all business-related tax expenditures is not going to be an option, Baucus says, so “some have thought of taxing passthroughs as corporations after they've earned a certain income because so much business income these days is through passthroughs, not traditional C corporations,” Baucus says.