11-29-2017, 02:05 PM
(11-29-2017, 01:56 PM)JustWinBaby Wrote: I don't have the exact numbers, but I think like 70% of corporations are already pass-thru. Here we're talking mostly large, publicly traded C-corps that account for about 10% of companies. The problem with making the behemoths pass-thru is that companies like Apple sit on billions of dollars and there's no pass-thru income until they pay dividends to shareholders (or they sell and realize a capital gain, if you understand dividend irrelevance theory).
Although I'm confused what they mean by "corporate" rates. I thought originally they were only lowering the rate for non-passive S-corps.
S and C corporations both utilize the same corporate tax rates. There are only the individual and corporate rates, and whether you use the corporate rates depends on whether you operate as a pass-through (which, as you know, some S-corps do). So I don't know how feasible it would be to lower corporate rates for one classification and not the other, especially given that those behemoths will want in on the action.