Once upon a time, most business income was taxed on the business side. For small businesses, the tax paperwork was a pain. So passthrough laws were made, allowing the owners to treat the business income as personal income, simplifying tax paperwork. The tax is still paid.
These changes over decades have moved the same tax from being called corporate tax to personal tax. There is nothing nefarious about it.
This last year, more such changes made to simplify taxes for small buisness moved more of the income in this manner.
I have been a small business owner for a long time, and do precisely this, because it simplifies my paperwork. The tax is still paid.
In aggregate this accounts for a lot more than most people realize.
Here's what happened this last year to move the needle
These changes over decades have moved the same tax from being called corporate tax to personal tax. There is nothing nefarious about it.
This last year, more such changes made to simplify taxes for small buisness moved more of the income in this manner.
I have been a small business owner for a long time, and do precisely this, because it simplifies my paperwork. The tax is still paid.
In aggregate this accounts for a lot more than most people realize.
Here's what happened this last year to move the needle
https://www.nerdwallet.com/blog/taxes/pass-through-income-ta...