- June 16, 2021
- Posted by: Stratford Team
- Category: Business
Senate Finance Committee Chairman Ron Wyden plans to propose changes to a business deduction established in the 2017 tax law that would limit the break for the wealthy while making it more broadly available.
Wyden’s legislation, which is still being drafted, will take aim at a temporary deduction of up to 20% that is available under Section 199A for partnerships, LLCs, and other entities taxed only at the individual owner level. Wyden (D-Ore.), a vocal critic of the Trump-era tax code overhaul, will likely aim to start phasing out the deduction for individuals making above $400,000 in annual business income, with the perk unavailable for people making over $500,000.
The bill, which a Wyden aide said is expected to be formally introduced in the next few weeks, also will seek to expand the deduction to cover other businesses that don’t receive a partial or full deduction currently, like lawyers, accountants, or doctors making above certain income…
