Senior Democrat Proposes Cap on Trump-Era Business Deduction

Senate Finance Committee Chairman Ron Wyden has drafted legislation that would overhaul a major part of the 2017 tax overhaul that Republicans billed as a boon to small businesses, and Democrats have criticized as benefiting wealthy business owners.

The bill would expand eligibility to types of businesses not currently eligible for the “pass-through” deduction created by the 2017 law, like lawyers, accountants, or doctors making above certain income thresholds.

The proposalenters the conversation around the broader infrastructure and social spending economic agenda that Democrats hope to advance this year, as it could raise tens of billions to help offset ...