A security that passes through payments from debtors to investors. Packages of loans are assembled and sold to investors by private lenders. Although pass-through securities have stated maturities, the actual lives of the securities are likely to be shorter, especially during periods of falling interest rates when borrowers pay off mortgages early. Economists have noted that the pass-through of exchange-rate changes to import prices, both in the United States and in many other countries, has declined over the past 40 years. They attribute this trend in large part to a decline in global inflation, which has bolstered central-bank credibility and has lessened exchange-rate volatility. Thing #4: Pass-through Income Deduction Equals 20 Percent. The Section 199A deduction, tentatively, equals 20 percent of a pass-through entity’s business income. For example, and keeping the math easy, if a pass-through entity makes $100,000, the deduction tentatively equals $20,000.