A new government funding bill is due by the end of September, which may require raising the debt ceiling. Three programs set to expire at the end of September will need attention: Federal Aviation Administration law, federal flood insurance and a children’s health-insurance initiative.
An analysis by Goldman Sachs found the President’s proposal to cut the tax rate for so-called pass-through businesses could cost the government about $2 trillion over 10 years. The tax-reform principles included a 15% tax rate for pass-throughs, which include small, owner-operated companies. Owners of pass-through businesses — also including hedge funds and law firms — report profits on their individual tax returns. Currently, the top rate on those entities is 39.6%. The lower pass-through rate would likely spur corporations to reorganize themselves as pass-throughs, as well as encourage individuals to shift labor income to business income.
Serving the West Side first, I am Mike Elerath of BR Capital for 1360 KUIK.
