Later On

A blog written for those whose interests more or less match mine.

Trump Could Save More Than $1 Billion Under His New Tax Plan

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Jesse Drucker and Nadja Popovich report in the NY Times:

President Trump could cut his tax bills by more than $1.1 billion, including saving tens of millions of dollars in a single year, under his proposed tax changes, a New York Times analysis has found. [Corruption consists of using a public office for private gain. Trump (and many around him) are corrupt in this sense. – LG]

On Wednesday, the White House announced a sweeping plan to cut a variety of taxes that would overwhelmingly benefit the wealthy. The estimate of Mr. Trump’s savings is based in part on information from his 2005 federal tax return. The analysis compares what his tax burden would be under current law with what it would be under the proposal.

Mr. Trump’s 2005 return is the most recent available publicly and was released in March by David Cay Johnston on the website DCReport.org. The Times’s figure also relies on an estimate of Mr. Trump’s net worth, calculated by the Bloomberg Billionaire’s Index to be $2.86 billion.

“I don’t benefit. I don’t benefit,” Mr. Trump said on Wednesday. “In fact, very, very strongly, as you see, I think there’s very little benefit for people of wealth.” [This is the standard Trump technique: simply lie. – LG]

In fact, high-income earners like Mr. Trump are likely to benefit disproportionately if the White House proposal becomes law. The estimates, calculated with the help of Robert Willens, an accounting expert, and Stephen Breitstone, a tax lawyer, provide a view into precisely how.

Savings of about $1.1 billion from repealing the estate tax

Though it would not be reflected on his income tax return, Mr. Trump’s proposal to eliminate the estate tax would generate the largest tax savings. If his assets — reportedly valued at $2.86 billion — were transferred after his death under today’s rules, his estate would be taxed at about 40 percent. Repealing the federal estate tax could save his family about $1.1 billion, though it could still be subject to New York estate taxes.

Savings of $31 million from repealing the alternative minimum tax

The decades-old alternative minimum tax is meant to prevent America’s wealthiest from using deductions to pay very low or no federal income tax. In 2005, it accounted for about 80 percent of Mr. Trump’s overall income tax payment. His plan to repeal the tax would save him $31.3 million.

Savings of about $16 million from taxing certain types of business income at 25 percent

Mr. Trump’s proposed changes could allow individuals to qualify for a significantly reduced tax rate of 25 percent on certain types of income they receive through business partnerships and similar entities. . .

Written by LeisureGuy

29 September 2017 at 7:33 pm

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