Trump said this tax break was for small businesses. It’s giving $17 billion to millionaires this year.
[...] Pass-through companies have their income “passed through” to their owners to be taxed under the individual income tax rate instead of the corporate rate. The vast majority of US businesses are pass-throughs, including those owned by President Donald Trump — his Trump Organization is structured as a collection of pass-through entities.
Under the previous tax law, such companies could be taxed as much as 39.6 percent, the individual rate for the highest earners.
Under the new tax regime, pass-throughs get to deduct up to 20 percent from their income before they’re taxed. Aaron Krupkin and Howard Gleckman, analysts at the Tax Policy Center think tank, called the deduction “extremely generous” for those who qualify it, noting the law as it’s written is complicated to navigate.