I see that the tax plan passed and this will affect the corporate tax rate (changed to 21% per Fidelity). In theory, this will impact investors. Considering the reduction, what can investors expect with this change? I haven't lived through many investment cycles, so I'm curious if this is a net positive, negative or neutral for investors.
From the listed article:
Corporate tax rates will be cut to 21% beginning in 2018. That tax cut is not scheduled to expire.
Pass-through businesses, businesses structured as sole proprietorships, partnerships, and S-corporations, will be taxed at individual tax rates, but will be able to deduct 20% of income. To prevent high-income individuals from taking advantage of this deduction, it would only be available to couples filing jointly with incomes below $315,000. For income above that level, the deduction would be limited to half of the W-2 wages or the individual's portion of the pass-through entity's income.
The plan would let businesses fully expense new equipment right away, but the provision would eventually expire.