In the Republican’s new “Pledge To America” they say:
We will allow small business owners to take a tax deduction equal to 20 percent of their business income.
However, there are two common forms of “small business” that doesn’t pay any taxes already. Instead, in Subchapter S corporations and Limited Liability Companies and Partnerships (LLCs), the profits from the companies are “passed through” to the owners, who pay personal taxes on the profits.
So here’s the interesting catch. You’re read about Koch Industries and their billionaire owners the Koch brothers, who are spending hundreds of millions of dollars waging a war against Obama. Well, wouldn’t you know it, Koch Industries is organized as an LLC. So are other large companies, like Bechtel, the huge construction company. So the Republicans are giving a 20% tax break to the Koch Brothers, a tax break almost certainly worth even more than the money they are spending on Republican causes. Who would have thought that throwing money at Republicans would be such a good business investment!
