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How Does Donald Trump Benefit From New Tax Reform Plan?

When he claims he won't benefit from the plan, he's lying.

The only reason the analysis does not have more of Trump’s previous tax records to assess, is because unlike other past presidents and presidential nominees, Trump refuses to release his income taxes, claiming that the federal government is auditing his returns. Most of what is publicly know is the 2005 tax return.

But some benefits for Trump can still be deduced from that return. The House tax legislation that just passed repeals the Alternative Minimum Tax. According to Maury Cartine, tax expert at Marcum LLP, that repeal would have saved Trump $31 million back in 2005. “The repeal of the Alternative Minimum Tax would result in an initial federal income tax savings of $31,261,179,” Cartine said.

Cartine adds that changes in taxes over the past 12 years would reduce that savings to $22.6 million, which is still significant.

Yet the legislation’s biggest benefit to Trump and his family is its repeal of the federal estate tax by 2024. The federal estate tax law requires heirs of estates valued above $5.5 million for an individual and $11 million for a married couple must pay a 40 percent tax on the estate. The House proposal to repeal the estate tax would save Trump and Melania, conservatively, more than $1.1 billion by 2024.

Other previous reports have shown how the wealthy would benefit the most from the proposed tax cuts. The nonpartisan Tax Policy Center has said that while taxes would be reduced, on average, by nearly $1,000 by 2027, the Top 1 percent of all taxpayers would get a cut of more than $62,000, while the Top 0.1 percent would get an average cut of $320,000.

The New York Times also estimated, back in September, that Trump and his family could save more than $1 billion under the Republican plan.

 

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    Dane is a comics writer-editor and screenwriter who lives in San Diego. He has a M.A. in Mythology S... keep reading