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Research Archive

September 12, 2022

Section 199A and “Tax Parity”

Key Points Read the PDF. Executive Summary In 2017, the Tax Cuts and Jobs Act included a new deduction for business income: Section 199A. This provision allows taxpayers to deduct up to 20 percent of qualifying business income against their taxable income and provides a special tax benefit for “pass-through” businesses—those not subject to the…