The U.S. Treasury proposed tax regulations for a new 20 percent income tax deduction. These regulations included rules to prevent the measure from becoming a tax loophole for wealthy Americans. Approximately 30 million U.S. businesses, including many small businesses, are organized as pass-through entities.
“The pass-through deduction is an important tax cut for small- and mid-size businesses, reducing their effective tax rates to their lowest levels since the 1930s,” Treasury Secretary Steven Mnuchin, was quoted as saying in Reuters.
“This 20-percent deduction will lead to more investment in U.S. companies and higher wages for hardworking Americans.”