What are you talking about?

If the money is used for retirement it isn't income

That or you aren't stating things clearly.  If you earn over $50K/year in INCOME due to passive investments you are impacted.

If you're impacted it means you have over $1M in business investments, a situation that hardly any small business has.  Heck over 85% of small business don't have ANY passive investment income let alone that much