President trump has created some changes not many in his year of presidency. Under
the House tax reform bill, businesses organized as sole proprietors, S corporations, or
partnerships would have their top marginal tax rate capped at 25 percent for qualified business
income. The following are examples This would be the lowest top marginal tax rate in more than
80 years. Over 99 percent of American businesses are incorporated as one of these “pass–
through” firms and currently face a top Federal marginal tax rate of 39.6 percent. This would be
the lowest top marginal tax rate in more than 80 years. Under the House bill, small businesses
that file a joint return would have their first $75,000 of income taxed at a low rate of 9 percent.
Under the Senate bill, businesses organized as sole proprietors, S corporations, and
partnerships would be able to deduct 17.4 percent of their qualified business income with some
restrictions on high-income households. For the next five years, American businesses will be
able to immediately write off the full cost of their heavy equipment and other capital investments.
