House's Complex Pass-Through Tax Plan Expected To Fizzle

As the House and Senate prepare to reconcile their vastly different proposals for taxing pass-through enterprises, practitioners anticipate that the more complex House plan, favoring capital-intensive businesses and passive investors, ultimately will get ditched for the more labor-friendly Senate version.

The tax treatment of pass-through businesses, such as S corporations, limited liability companies and partnerships, which pass their income on to owners to be taxed at individual rates, was a crucial 11th-hour bargaining chip that helped win over Republican hold-outs with the power to sink the...

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