Lest you be jealous that the one-percenters would get another tax break not available to middle-income folk, take heart. Anyone able to turn themselves from a wage-slave salaried employee to an independent contractor could also take advantage of the same 15 percent rate.
Think it’s too much trouble to make the shift? Just take a look at Kansas, which entirely eliminated state income taxes on pass-through businesses in 2012. The Kansas City Star reported that in just the first year, the number of tax filers claiming tax-free pass-through business income increased by about 40 percent, from 191,000 to 333,000. And those taxpayers saved $200 million in state taxes, a pittance compared to what they’d save in federal taxes under Trump’s plan.
While Trump talks about raising taxes on investment managers, he’d do just the opposite. It’s a sweet deal. I may even try it myself.