Wyden pitches curbs on tax break for noncorporate businesses

In a summary, Wyden said his goal was to not only limit the break for upper-income and larger businesses but also to make the deduction easier to claim for owners of small to midsize pass-through businesses. 

His plan would get rid of restrictions on the type of businesses that can currently qualify for the deduction, with professional services-related firms currently ineligible if they earn more than a certain amount. For those business owners, they would become eligible for the deduction up to the new $400,000 earnings threshold regardless of what trade they’re in.

Wyden’s bill would also get rid of special rules determining the amount of the deduction based on W-2 wages paid to employees, with an exemption for firms like real estate developers that may invest a lot of capital but not have many workers on payroll. Instead, there would be only the definition of eligible income and the $400,000 income limitation.

The measure includes some special…

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