Though it would benefit me greatly, the proposed pass-through entity tax cut is a bad idea

Source: Coyote Blog
by Warren Meyer

“I own an S-corp and would benefit greatly from a reduced tax rate on S-corp pass through income. But I oppose it. The basis of this tax proposal is a familiar one — there is some type of economic behavior that Congress thinks is either meritorious or counter-productive, and there is a great urge to tweak the tax code to promote or hinder these behaviors. We get sold on the idea that owning a home is better than renting and thus we have the mortgage interest deduction. There are thousands of such tweaks in the tax code, and most have little to do with economic reality and more to do with some special interest rent-seeking with Congress. Someone in Congress thinks it’s good that business people own small businesses and they should get a lower tax rate. That’s me, so thanks. But we end up with craziness, exactly as we do every time Congress tries to pick winners and losers.” (11/07/17)