Observation: The Senate Bill's approach to granting a tax break for passthrough business income stands in stark contrast to the approach in the House Bill
. The House's proposal focuses on a maximum tax rate for the business income of an individual (originally a 25 percent rate but this was changed to a fluctuating rate, capped at 25 percent) and generally favors passive income over non-passive income. Consequently, the House provision provides most of its tax benefits to taxpayers in the highest tax brackets (35 percent and 39.6 percent in the House Bill
) and to passive owners.