The following article by Gil B. Manzon, Jr. and Tim Gray was posted on the Conversation website May 1, 2017:
The Trump administration wants to change the way the government taxes so-called pass-through entities.
In a nutshell, the Trump proposal would dramatically lower the rates this category of filers pay. This would lead to very creative tax planning at best and outright evasion at worst, while prompting more companies to adopt this type of business structure to gain the huge benefits.
More fundamentally, we argue, this would cause faith in the fairness of the tax system – a cornerstone of our voluntary method of taxation – to falter. The consequences of that could be dire.
Continue reading “How Trump’s tax proposal could weaken faith in the system’s fairness”