National Headlines

Modern Healthcare: Independent Doctors Get Sweet Deal Under GOP Tax Cut Bill

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While many healthcare industry groups are unhappy about the Republican tax cut bill, primary-care physicians and dentists in independent practices may be smiling. That’s because the bill, which passed Congress Wednesday, sharply reduces the personal income tax rate for owners of pass-through entities such as partnerships, Subchapter S corporations, and sole proprietorships. That’s how most physician and dental practices are organized. Under the Tax Cuts and Jobs Act, owners of pass-through entities will receive a 20% deduction on their taxable income, dropping their maximum effective tax rate from the current 39.6% (or 37% under the bill) to about 29.6%. (Meyer, 12/20)



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