Senate Passes Tax Bill with Break for ‘Pass-Throughs’

Construction and engineering groups are sifting through the sweeping tax-code rewrite that the Senate approved on Dec. 2, but some see it as better than the House-passed version, particularly in its treatment of partnerships, sole proprietorships and other “pass-through” entities. Stephen Sandherr, Associated General Contractors of America CEO, noted that a majority of construction firms are pass-throughs, and noted “the Senate proposal has wisely increased the pass-through deduction from 17.4% to 23%” but added that “the fact that the cut is temporary is concerning.” AGC and other construction groups hoped Congress would use tax legislation to provide financial help for infrastructure programs, such as the federal-aid highway program. But that hasn’t happened. “This is a missed opportunity,” Sandherr said.

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