Senator Steve Daines touted a reduction in taxes on “pass through” companies as his big coup for Main Street Montana. It was his wily and shrewd negoatiating that got this provision into the tax bill. It turns out Daines has provided a new loophole for rich people with good tax lawyers to drive their twin-33 trailer carrying Rolls Royce’s through.
The headline from this Politico story says it all:
‘Holy crap’: Experts find tax plan riddled with glitches
It’s a 500 page bill scribbled on the back of a napkin. And when you vote on it without public input, hearings, etc. it makes sense that it is riddled with problems.
Senator Daines worked very hard to ensure his pet project got included in the bill. He went as far as to allegedly withhold his support until Mitch McConnell reduced taxes on pass through businesses.
Uh-oh Steve. According to experts:
Some of the provisions could be easily gamed, tax lawyers say. Their plans to cut taxes on “pass-through” businesses in particular could open broad avenues for tax avoidance.
Now maybe this will help the everyman. Maybe this loophole will allow teachers to deduct school supplies. Maybe it will allow for every man, woman and child who don’t have a lawywer on retainer to pay less taxes. Sometimes mistakes yield good results!
Their plans to cut taxes on pass-through businesses would open a whole new palette of complicated tax-avoidance techniques allowing the well-to-do to slash their taxes, lawyers say.
People will be tempted to recharacterize their income in order to take advantage of a 23 percent deduction for pass-throughs offered by the Senate. For someone making $500,000, that would save them $30,000.
Oh, so this will only help rich people. Makes sense.
Even when our Senator works hard he screws up. And wouldn’t you know? It benefits the rich. Color me shocked. I wonder if Senator Daines makes more than $500,00 and can afford a tax lawyer to help him use his newly minted loophole…