Thursday, December 7, 2017
Following up on my previous post, The Only Person Mentioned In The Republican Tax Bill Is ... Steph Curry: Samuel C. Thompson, Jr. (Penn State), Taxing Trump and Curry under the Republican Plan, 157 Tax Notes 1149 (Nov. 20, 2017):
It looks like the Republicans will be successful in enacting the Tax Cut and Jobs Act (TCAJA). The House Republican version of the TCAJA would adopt a maximum 25% rate on certain business income of pass-through entities. In attempting to sell this provision, the House Republicans have compared Stephen Curry, a star professional basketball player, who would not qualify for the 25% rate, to Steve of “Steve’s Bike Shop,” who would be entitled to the 25% rate. Apparently, the House Republicans used Curry because he got into a fight with President Trump over Curry’s decision not to visit the White House in connection with a celebration of his team’s NBA championship. ...
I argue that (1) this is a bogus comparison, and (2) the real comparison is between Curry and President Trump under the plan. The article (1) shows that under the 25% provision President Trump would receive a “huge” tax break compared to Curry, and (2) argues that this 25% rate is bad tax policy and should be stricken from the TCAJA, thus taxing both Curry and President Trump at the maximum 39.6% rate.