U.S. Census data shows that pass-through entities (LLC, sub-S corporations, partnerships and proprietorships) created most of the new jobs in 2013 and 2014. Census only began tracking this information by state in 2010 and hasn’t published 2015 data at this writing so we only have two years of change before and after tax reform to measure; that said, pass-through employment grew much faster after tax reform. Pass-through employment increased by 2.4 percent between 2010 and 2012 but jumped 8.4 percent between 2012 and 2014.
Some of the pass-through job additions are attributable to C-corporations that converted to pass-through status but most likely fewer than the number of new proprietors added, which aren’t included in the Census database; their employment data is provided by the Bureau of Labor Statistics which excludes proprietors and farm workers. The Kansas Department of Revenue reports that only 3.3 percent of C-corporations converted and the total number of W2s for all Ccorporations declined by 10,396. Even if every W2 decline resulted from a conversion, the job transfer would still be less than the 15,134 new proprietors reported by the Bureau of Economic Analysis.