,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #aaf  ,,in ,,the ,,house ,,of   
,,representatives  ,january #c1         
#bjag,mr4 ,buchanan introduced the      
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to ensure that          
pass-through businesses do not pay tax  
at a higher rate than corporations4  #a4
 ,short title ,this ,act may be cited as
 the ,main ,street ,fairness ,act4  #b4 
,business income of pass-through        
entities and individuals  7a7 ,qualified
 business income taxed at corporate rate
 ,section #a of the ,internal ,revenue  
,code of #aihf is amended by            
redesignating subsection 7i7 as         
subjection 7j7 and by inserting after   
subsection 7h7 the following3  7i7      
,qualified business income  7#a7 ,in    
general ,if a taxpayer has qualified    
business income for any taxable year1   
the tax imposed by this section for such
 taxable year shall not exceed the sum  

of--  7,a7 a tax computed at the rates  
and in the same manner as if this       
subsection had not been enacted on the  
greater of--  7i7 taxable income reduced
 by the sum of net capital gain plus    
qualified business income1 or  7ii7 the 
amount determined under clause 7i7 plus 
so much of qualified business income    
that1 when added together1 would not be 
taxed at a rate greater than the maximum
 rate in effect under section #aa7;b71  
7,b7 tax on qualified business income   
reduced by the amount of qualified      
business income on which a tax is       
determined under subparagraph 7,a7 7if  
any71 determined under section #aa for  
the taxable year by treating qualified  
business income as taxable income of a  
corporation1 plus  7,c7 a tax on net    
capital gain1 computed as if subsection 
7h7 imposed a tax on net capital gain4  
7#b7 ,qualified business income defined 
,for purposes of this subsection--  7,a7
 ,qualified business income ,the term   
qualified business income means all     

items of income1 deduction1 loss1 or    
credit properly attributable to the     
taxpayer from the active conduct of a   
trade or business in which--  7i7 in the
 case of a partnership1 the taxpayer    
holds a capital or profits interest1    
7ii7 in the case of an ,s corporation1  
the taxpayer is a shareholder1  7iii7 in
 the case of a sole proprietorship or an
 entity otherwise disregarded as        
separate from its sole owner1 the       
taxpayer is the sole owner1 and  7iv7 in
 the case of a trust or estate1 the     
taxpayer is a beneficiary4  7,b7 ,net   
capital gain ,such term shall not       
include any item taken into account in  
determining net capital gain4  7,c7     
,exception for financial services income
 of partnerships ,in the case of a      
taxpayer who holds a capital or profits 
interest in a partnership1 such term    
does not include financial services     
income 7as defined in section           
#ijd7;d77#b77;,d774  7#c7 ,limitation   
,paragraph 7#a7 shall only apply to a   

taxable year in which the maximum rate  
of tax under this section exceeds the   
maximum rate of tax under section #aa4  
7#d7 ,net capital gain ,for purposes of 
this subsection1 the term net capital   
gain has the meaning given to such term 
by subsection 7h74  7#e7 ,regulations   
,the ,secretary shall issue such        
regulations or other guidance as may be 
necessary to carry out the purposes of  
this subsection4  4  7b7 ,effective date
 ,the amendments made by this section   
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4