Tax Reform: Taxing Trump and Curry Under the Republican Plan

6 Pages Posted: 6 Dec 2017

See all articles by Samuel C. Thompson, Jr.

Samuel C. Thompson, Jr.

Pennsylvania State University, Penn State Law

Date Written: December 4, 2017


It looks like the Republicans will be successful in enacting the Tax Cut and Jobs Act (TCAJA). The House Republican version of the TCAJA would adopt a maximum 25% rate on certain business income of pass-through entities. In attempting to sell this provision, the House Republicans have compared Stephen Curry, a star professional basketball player, who would not qualify for the 25% rate, to Steve of “Steve’s Bike Shop,” who would be entitled to the 25% rate. Apparently, the House Republicans used Curry because he got into a fight with President Trump over Curry’s decision not to visit the White House in connection with a celebration of his team’s NBA championship.

In the attached article in Tax Notes entitled Taxing Trump and Curry under the Republican Plan, 157 Tax Notes 1149 (Nov. 20, 2017), I argue that (1) this is a bogus comparison, and (2) the real comparison is between Curry and President Trump under the plan. The article (1) shows that under the 25% provision President Trump would receive a “huge” tax break compared to Curry, and (2) argues that this 25% rate is bad tax policy and should be stricken from the TCAJA, thus taxing both Curry and President Trump at the maximum 39.6% rate.

In addition to this post on the TCAJA, see my following posts on SSRN regarding other issues under the TCAJA:

1. Tax Reform: Territoriality Breeds De Facto Inverters; Trump's Proposal to End Deferral; and Logic Says Yes to Imputation at

2. Tax Reform: If Territoriality, Then BAT Lite, the Child of the Rejected DBCFT at

Keywords: Pass Through Income, Flow Through Entities

Suggested Citation

Thompson, Jr., Samuel C., Tax Reform: Taxing Trump and Curry Under the Republican Plan (December 4, 2017). Tax Notes, Vol. 157, November 2017. Available at SSRN:

Samuel C. Thompson, Jr. (Contact Author)

Pennsylvania State University, Penn State Law ( email )

Lewis Katz Building
University Park, PA 16802
United States

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