Originally Posted by Remington270
Originally Posted by oakachoy
Originally Posted by bill

Originally Posted by Canez
[quote=doekiller]It eliminates the deduction for state and local taxes. That would hurt 40 million people, primarily residents in high-tax states like California and New York. It would add $1.3 trillion to federal revenues.


Yes but it also heavily cuts taxes on corporations and other highly taxed individuals.

Rep. Kevin Brady also confirmed this would add nearly 1.5 trillion to the debt over ten years.


Highly taxed (39.6%) "individuals" will receive nothing in this plan. They will see an increase if they live in a state with income tax.


Bill, my company is an LLC, how will the new plan affect me?


I think LLC income is taxed as personal income, so I don't think there would be a lot of change. If there was, everyone would magically become an LLC, which takes $150 and about 15 minutes. [/quote]

There was talk of making S-Corps fall in line with the corporate rate. It still wouldn't be the way you say, b/c even when you are a single owner S-Corp, you have to give yourself a "reasonable" salary that would still be taxed at the individual rate and subject to payroll taxes. You can't just claim all of your S-Corp income as your individual income, IRS no likey that. They want to get you on the FICA, social security, etc. So it would only be your profits after all expenses, payroll expenses, etc that would be taxed at corporate rate. That's if they even did anything with it.