U.S. Senator Ron Johnson (R-WI) confirmed Friday morning on the Jay Weber show on WISN-AM that he will be voting for the tax reform bill in the Senate. Johnson was holding out for a better tax rate for “pass-through” businesses that pay taxes through the returns of individual business owners.
“So late last night I came to an agreement with Senate leadership and we will get a 23 percent deduction level for pass-throughs,” Johnson told Weber. “We’ll also get better transition rules for pass-throughs to become C-corps, because that’s what is happening.”
Johnson told Weber that the change in the tax code will cause pass-through businesses to change their structure, and the rules change will make it easier for pass-throughs. The senator also told Weber that he will be “at the table” when the conference committee meets to determine the final bill for passage in both Houses of Congress.
The 23 percent deduction level for pass-throughs means they will only pay taxes on 77 percent of their income.
“It’s a complicated way. It drives me nuts,” Johnson said. “But it’s a complicated way to achieve a lower rate but the rate will be a little under 30 percent for pass-throughs.”
Johnson said this agreement on pass-through business taxes does not mean that Senators Bob Corker of Tennessee and Jeff Flake of Arizona will end their holdouts. However, the Republicans should now have the votes to pass the bill in the Senate.
The first votes on the bill may come as early as 11:00 AM Friday, according to Johnson.
“I may be flying home tonight,” Johnson told Weber.
You can listen to the entire interview:
