NYC Officials Eye Pass-Through Entity Tax
Democratic New York City officials and major unions are calling on state lawmakers to raise $700 million annually by limiting the city’s pass-through entity tax credit that’s used by private equity firms, hedge funds, and lawyers, Danielle Muoio Dunn reports.
The PTET involves pass-through businesses, such as partnerships, electing to pay state income tax on the dividends owed to partners. Since businesses aren’t subject to the state and local tax deduction cap, the PTET reduces the federal taxable income that flows back to partners. New York provides the partners with a full credit ...