New EY Study Shows Why Pass-Through Deduction Should Be Broad, Permanent

Parity for Main Street Employers

Today, PMSE released an analysis by EY of the Tax Cut and Jobs Act’s effect on the taxation of pass-through businesses, with a focus on S corporations.  The EY study found that even for businesses getting a full 20-percent deduction, the tax rate on pass-throughs is still higher than for the average C corp.  This is especially true after the deduction expires in 2026.  That’s why it is essential that the deduction applies as broadly as possible, and that Congress makes the deduction permanent.  A copy of the full EY study can be found here.