Trump will personally save up to $15m under tax bill.
President Donald Trump and six members of his inner circle will be big winners of the Republicans’ vast tax overhaul, with the president personally benefiting from a tax cut of up to $15m a year, as per an analysis carried out by a research group the Center for American Progress (CAP). CAP a leading Washington thinktank, finds that changes to business rules will save Trump roughly $11m to $15m per year, while an amendment to the estate tax – the tax on the transfer of an estate of a deceased person – would potentially save his heirs $4.5m.Under current law, the first $11.2m of a couple’s estate’s value is excluded from taxation, and any amount above this is taxed at a 40% rate. The new bill doubles the exemption to $22.4m. Along with Trump himself, Wilbur Ross, the commerce secretary; Linda McMahon, administrator of the Small Business Administration; Betsy DeVos, the education secretary; Steven Mnuchin, the treasury secretary; and Rex Tillerson, the secretary of state, will benefit to the tune of $4.5m from changes to the estate tax, according to the CAP. More than 90% of businesses in the US are “pass-through businesses”, meaning their income passes through to the owners’ individual tax returns, where it is taxed at ordinary income tax rates, instead of being filed on a separate business return like a corporation. The sweeping tax bill cuts the top rate on “qualified” pass-through business income from 39.6% under current law to 29.6%. Assuming the full benefit of this, the CAP roughly estimates a tax cut of $11m to $15m for Trump (based on an estimate of $150m of passthrough income from reviewing his financial disclosure, and the $109m in real estate/pass-through income on his 2005 tax return); $5m to $12m for Jared Kushner, White House senior adviser and Trump’s son-in-law; and $2.7m for Betsy DeVos, the education secretary.
US President Donald Trump has hailed sweeping tax reforms after they were given final approval by Congress, despite fierce criticism by Democrats.
“We are making America great again,” a jubilant Mr Trump said. He is expected to sign his first major legislative achievement – the biggest rewrite of the US tax code in a generation – in the coming days. The bill slashes taxes for corporations and the wealthy, while offering mixed, temporary relief to working people.
Democrats have labelled the Republican tax bill “government for sale”, with prominent Senator Elizabeth Warren describing it as a “heist”. Trump thanked congressional leaders for pushing through what he called “the largest tax cut in the history of our country”.
Republican House Speaker Paul Ryan praised Trump’s “exquisite presidential leadership” for the success of the bill.
Earlier, in a statement, Trump said: “I promised the American people a big, beautiful tax cut for Christmas. With final passage of this legislation, that is exactly what they are getting.”