When is comes to the GOP proposed tax reform package, those earning $50,000 or less benefit most relatively. I broke that down first. The second important piece of the pie is the corporate tax reform proposal. The news here is notable too:
Flat corporate tax rate of 20 percent (same as House plan but doesn't take effect until 2019)
Pass through rate of 31.8 percent or less for sole proprietors, S corporations & partnerships (compares to 25 percent flat House plan rate)
Deductions limited but not to the extent of House plan
So just as the Senate plan is most favorable to adults earning $50k or less, the business side of the coin is improved but not to the extent of the House proposal. The most notable changes occur with the timeline of the reform, one year delayed, and the top pass-through rate that's 6.8 percent higher than the House plan.
The argument by many leftists is that cutting the top corporate tax rate will shift the tax burden further to individuals. That's factually inaccurate. While the top corporate tax rate is currently 38 percent, the net effective tax rate average according to the Treasury Department is 19.4 percent.
As has well been documented, there are many companies that avoid paying any corporate tax due to current loopholes, i.e. GE and those who pay the top rate that aren't favored by the code i.e., CVS.
This new rate will actually be a slight overall increase for the average business unless they're specifically investing in growth through R&D expenses or paying for affordable housing to help potential employees.
What it does is end the "winners and losers" that have been carved out in the code.
About half of companies will benefit. About half will pay more - some substantially more and the overall burden will be about the same.