Bill > HR3275

This bill aims to modify several aspects of the tax code to provide tax relief for small businesses and address perceived loopholes in investment partnership taxation. Specifically, the bill introduces a graduated corporate tax rate for small businesses, with corporations earning up to $5 million taxed at 18% for the first $400,000 and 21% for income above that amount. It also seeks to close the "carried interest" loophole by changing how investment partnership interests are taxed, particularly for partners providing investment management services. Under the new rules, income and gains from these partnership interests would be largely treated as ordinary income rather than capital gains, with some exceptions for qualified capital interests. The bill enhances the self-employment tax deduction for lower-income individuals by allowing them to deduct three-quarters of self-employment taxes instead of half, and increases the excise tax on corporate stock repurchases from 1% to 1.5%. These changes would generally apply to taxable years ending after the date of enactment, with some nuanced implementation details for transitional periods and specific types of partnerships.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3275/all-info