Hillary Clinton and Donald Trump are both eyeing changes that would affect the federal income taxation of large and small businesses. But not surprisingly, they come to the table with very different business tax proposals.
Trump Supports Major Business Income Tax Reform
The Republican presidential nominee wants a 15% business income tax rate. But how exactly that rate would apply is anyone’s guess. Regular corporations are now subject to a maximum federal income tax rate of 35%. Individual owners of pass-through entities — such as S corporations, partnerships and LLCs — which pass their income to their owners for tax purposes, as well as sole proprietors who report income on Schedule C of their tax returns, are taxed at individual rates, which currently top out at 39.6%.
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