This handy guide lays out some ways that the legislators in their wisdom have sought to curb this understandable impulse. E.g. the allowable deduction is proportional to regular wages paid by the pass-thru business. So you can only take deductions on income of Person Inc if Person Inc also pays wages that are taxed at regular rates. Provisions like that will keep the tax accountants busy.

I might be wrong but I think that tax rate is not 20%.

I think the deduction is 20%. If I understand it correctly then what it means is that if you have earned $100k then you are taxed only on $80k and 20% (20K in this case) is your deduction.

Can someone confirm/deny it.

If you are not an W-2 employee and your business is not incorporated, by default you ARE running your business as a pass thru entity.

BTW - There is no 20% tax. There is a 20% deduction for some pass-thru income.

I don’t think certain benefits like healthcare and 401(k) accounts can be conferred that way if you’re W-2, but if you’re 1099 I see absolutely no reason not to.

A simple rule of thumb seems to be that if you work for the income don't bother becoming a pass thru.

If other people or real estate work to generate the income, go for it!