The new tax code is extremely complicated but I think most Anesthesiologists won't be hurt that badly by it. Sure, a select few will get hosed by the new code but the majority seem to benefit from it:
"explaining all the details of the Senate Finance Committee’s pass-through provisions would require a team of lawyers, but one feature is worth highlighting: The new deduction would be limited for “specified service businesses” like doctors, lawyers, and accountants, and for businesses without sufficient wage expenses paid to employees. But those limits would not apply to taxpayers with taxable income below $250,000 ($500,000 for joint filers). And the benefit of the deduction phases-out rapidly, over an income range of just $50,000 ($100,000 for joint filers).
That means that individual taxpayers with pass-through income subject to the phase-out could face very high marginal tax rates for reporting additional income. How high?
Consider the example of a married couple whose entire income is “specified service” income generated by a pass-through entity and who claims the standard deduction. At an income of $524,000, the couple could take an $87,000 deduction (17.4 percent of the couple’s taxable income “without regard” to the deduction) that would
reduce their taxes by $30,450 (since they are in the 35 percent tax bracket), but the deduction is entirely phased out at an income of $624,000. On average, that amounts to more than a 30% surtax on top of the 35% statutory tax rate over that range of income.
The actual phase-out is much more complicated, as the
bill’s text released Monday night makes clear, because the deduction continues to apply even as its benefit is phased out. (If that sounds convoluted, it’s because it is.)
The couple’s marginal income tax rate would jump to 61.375 percent at $528,541 of income. And it would rise to 73 percent until their income reaches $624,000 and the deduction is fully phased-out, at which point their marginal tax rate would return to the 35 percent ordinary income tax rate. (Note that these calculations do not include the additional 3.8 percent in self-employment payroll tax or the net investment income tax)."