Trump and others have pitched the pass-through plan as a boon for small businesses -- but pass-throughs can be very large businesses in addition to mom-and-pop shops. Trump himself owns hundreds of limited liability companies, according to his federal financial disclosure.
Setting limits on the pass-through rate is a touchy issue for a number of lawmakers.
“I want to make sure the pass-through rate for small businesses is actually a pass-through rate for all businesses -- I’m hearing that may not be the case, and that is a problem,” said Representative Mark Meadows, a North Carolina Republican and the chairman of the House Freedom Caucus.
Earlier Wednesday, Meadows predicted a bumpy ride for the House bill, saying it would unleash dissent “like you’ve never seen.” Still, that doesn’t mean the effort will fail, he said.
“It may be a little messy, it may not be as fun as we would all have liked to have seen it be over the past few weeks,” Meadows told reporters. “But we’re going to get it done, and failure is not an option.”
This article was provided by Bloomberg News.