How would the new tax bill impact pay at big four firms? Not our work, but partner comp and staff comp. thanks

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Also, I guarantee that there will be a lot more work and so they will have a lot more revenue coming in as well.

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Deloitte 1 - many partners will see their taxes go up. We’re not eligible for the passthrough deduction.

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Agree with EY1, 2 and 3. I expect to pay more tax. I'm not big-4, top 25 firm.

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^ I guess they didn't pay their lobbyist enough. That's kind of a joke but it's basically the answer to why there are certain random provisions in the tax code. I guess that's how it works for any law.

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Less taxes for them. More money more money

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EY2 is right. Also, there is a big question regarding whether state and local taxes will be deductible since they are incurred as part of business income, or whether that deduction will be gone like it would be for employees. Partners pay state and local taxes everywhere the firm makes money, regardless of where they reside.

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Because its about investment I.e. Having capital investment in equipment and property to warrant a tax cut rather than simply providing a service - law, accounting, architect, consulting, more and more - those professions don't invest in property to support their business. So service only partnerships, s-corporations and sole proprietorships are excluded from low passthrough tax rate.

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Yeah, EY4, except I do have capital in the business. It’s actually super frustrating and I can’t believe we aren’t able to benefit from this provision (which is actually a huge BS loophole).

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EY2 is exactly right- incredibly frustrating. Particularly when hedge funds are able to participate in the small business pass through. It’s not as though it’s a partnership where all labor is provided by the partners themselves, it’s an entity with leases, equipment, software investment and tens of thousands of employees in the country. I wouldn’t be surprised if some firms change to be C-corps at least in some capacity, and make partners employees as opposed to partners. If the Corp tax rate is lower, why not. Also eliminates a lot of the other compensation issues like the state taxes, medical coverage, etc. Who knows...

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Hey partners, let's talk about frustrating - a mortgage holder making $150-250k in a state with income taxes (oh about 45 states) gets a tax INCREASE when everyone else above and below gets a tax cut. High earners weren't getting the state tax ded. Anyway (amt). . The state inc. Tax deduction repeal is evil. So I guess all of us humans have something to wine about while multi nationals are having martinis in the cayman right now

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It’s not the tax code; it’s the out of control liberal state governments. Either throw them out of office or do what companies do and vote with your feet and move to a low tax state.

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Asked in other thread but why are accounting partners specifically excluded from lower pass through rate

Agree @EY4, I make $85k in San Francisco(where I'm already just scraping by) and will see my taxes go up do to the repeal of state and local taxes. Just another reason to get out I suppose. The middle class will soon no longer be able to live in cities like SF, NYC, DC. It will just be the extreme poor who can't afford to leave and the uber wealthy

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