Pass Through Income Tax Cuts for Small Businesses

The current tax reform act makes things even worse for small businesses relative to large businesses. The plan cuts the pass through rate, but it does this in a really convoluted way. Only 20% of your income is eligible for these lower rates in the form of a deduction. For businesses in the service sector, which by the way is most small businesses, they're only eligible for the deduction if your income is on the pretty low end. So overall, I think that it favors some industries over others. And also, many small businesses won't be eligible for this deduction at all.