Donald Trump has wisely rescinded most of Joe Biden’s odious anti-business regulations.

One conspicuous and costly omission has been Biden’s hostile IRS rules applying to partnerships – a common form of business organization and expansion. Most of Microsoft’s revenues/profits flow down through its business partners.

Business partnerships are vital contributors to the U.S. economy.  A 2024 study by Ernst and Young for the Small Business Entrepreneur Council, found that 10 million Americans work for partnerships and they generate $1.3 trillion in GDP.

The Biden IRS holdovers (some who worked for the notorious Lois Lerner) and Ron Wyden, the ranking Democrat on the Senate Finance Committee, want to alter the “economic substance doctrine”, which determines how the taxes on a business’s profits are applied to the partners. Firms could face a giant tax bill AND a confiscatory 60% strict liability penalty.

Wyden says his proposed crackdown on partnerships would raise $727 billion, according to Joint Committee on Taxation estimates. That would be bad enough if Congress were doing it via legislation, but IRS staffers are trying to implement his proposals WITHOUT CONGRESSIONAL APPROVAL.

The Trump admin promised to end this illegal rewrite of the tax laws, but because of the turmoil at the IRS, the Biden-era rules still stand. This could be the largest non-Congressionally approved tax increase in American history.