In 1998, when I was Deputy Assistant Secretary for Tax Analysis at the Treasury Department, I asked my staff expert on the Earned IncomeTax Credit (EITC) how many people the EITC had lifted out of poverty.
Finally, active partners don't owe the 3.8% tax on their share of a partnership's business income, unless it's from trading financial instruments or commodities, says Monte Jackel, a taxexpert in Silver Spring, Md.