The bill introduces a great deal of complexity for business income that isincluded as part of a personal return. So much for simplifying the tax code.The House and Senate bills took different approaches to dealing with the factthat the top corporate rate under the new law would be so much less than thetop personal rate. The House had a complicated scheme that imposed thecorporate rate on a portion of Schedule C and Schedule E earnings and thepersonal rate on the rest of it with the portion subject to the personal ratevarying depending on the type of business. This is supposed to be simplerThe Senate meanwhile simply proposed a tax exclusion for a portion ofSchedule C and Schedule E earnings with various numbers batted around duringthe negotiations as well as a cap on the exclusion to discourage abuse.According to what Iu2019m reading the compromise bill that came out ofreconciliation will simply allow you to deduct 20 of your Schedule C andSchedule E passthrough earnings from your income without any cap.There are also several changes relating to deductibility of certain businessexpenses the most significant of which have to do with net operating losses.Until the bill is finalized itu2019s going to be hard to predict what willhappen in addition passage of this bill is still uncertain with Marco Rubioand Bob Corker both on record as opposed to the bill the Republicans cannotafford to lose anyone else at all and at the moment two Republican Senatorsare too ill to vote which means at this moment the Republicans do not havethe votes needed to pass the reconciled bill.