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Mission: To assist businesses expand or relocate to extra optimum, business-pleasant, lower-cost places. This will get to why I titled this weblog submit “Apparently income is not simply income any extra.” Congress seems to be moving towards creating lists of professions and businesses that should get larger versus lower tax charges. It is not just a matter of, say, more favorable price recovery rules in one profession fairly than one other. Now actual labor income (with sufficiently nicely-advised structuring) will get different marginal tax charges, depending on whether or not it is earned in a business that Congress likes extra, or one which it likes much less. And this is completely ad hoc and selected in secret, with out even a statement of broader underlying rationales. A dollar isn’t just a greenback – its tax charge is dependent upon whether and how much Congress likes the related commerce group.

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