The tax bill heading for adoption in Congress bestows one of its biggest and most controversial gifts—a 20% deduction for pass-through revenue—on the majority of U.S. firms that are partnerships, S-corporations and sole proprietorships.
The Senate and House versions of the tax bill excluded from the deduction architects, engineers, doctors, lawyers, financial services firms and numerous other types of businesses. Before, those type of companies were lumped together for tax purposes.