Tax Bill Offers Last-Minute Breaks for Developers, Banks and Oil Industry<br />But the companies would still bring those earnings home at rates of 7.5 to 14.5 percent — well below the existing corporate income tax rate of 35 percent<br />and also lower than the new corporate income tax rate, which the bill would cut nearly in half to 20 percent.<br />The richest taxpayers will be taxed at a rate of about 29.6 percent on such income, a big cut from the current top federal income tax rate of 39.6.<br />Investments in mortgages held by real estate investment trusts would be able to take advantage of<br />the lower pass-through rate instead of being taxed at ordinary income rates, which are higher.<br />“I’m not sure if that is a loophole or the intent of the legislation.”<br />One of the bill’s biggest windfalls for the wealthy — cutting taxes on income received through so-called<br />pass-through entities like partnerships, popular with real estate developers — got even more generous.<br />The bill extends so-called bonus depreciation — the ability to take big deductions related to certain corporate investments — at a cost of $34 billion,<br />but pays for it by reinstating the corporate alternative minimum tax.<br />But the final version doesn’t apply to employers in states where such paid leave is either required<br />— or will soon be required — by state law, as in New York, California, New Jersey and Rhode Island.<br />Thanks to an amendment offered by Senator John Cornyn, Republican of Texas, certain income from gas<br />and oil operators could also qualify for the new, lower rate.
