The Tax Cuts and Jobs Act of 2017 (TCJA) made the following changes to the tax code: – C corporation taxable income is now taxed at a 21% rate (previously 35%) – Individual tax rate on dividend income remains unchanged – Individual tax rate on ordinary income is decreased slightly (highest marginal tax rate decreased from 39.6% to 37%) – Individual owners of flow-through entities can now take a 20% qualified business income deduction (this is a new deduction that was not available before the TCJA)

• In general, from a tax perspective, does the TCJA make the C corporation form more favorable? Or flow-through entities more favorable? (show your calculations)