7 professions that are going to win big from tax reform
• House and Senate Republicans have worked out a final tax plan , which includes a 20% deduction for pass-through businesses.
• Business Insider's Pedro Nicolaci da Costa wrote this will "disproportionately benefit the wealthy" by allowing rich business owners to avoid higher individual tax rates.• Small Business Labs estimates the plan's pass-through policy will only benefit top earners.
The finalized Republican tax plan throws a 20% tax deduction the way of pass-through businesses.
Pass-through businesses - including LLCs and S-corporations - don't pay corporate taxes. Instead, income "passes through" to the owner, who then pays taxes on the earnings.
The House initially proposed a 25% deduction, while the Senate's initial plan called for a 23% deduction.
The measure has been criticized as a huge boost to the 1% . According to Small Business Labs , this provision stands to benefit only the wealthiest of pass-through business owners, and will not likely apply to highly-paid professionals who run "service firms," including doctors and lawyers.
Business Insider's Elena Holodny reported the wealthiest American households " stand to benefit handsomely from the plan," with a $10 million household income receiving an annual tax cut of over $200,000.Here's a look at some occupations that are likely to benefit most from the plan: