The Tax Cuts for Donald Trump Act:
That should be the name of the
recently announced GOP tax plan. The major beneficiary of this tax plan is not the
American public broadly but, instead, Donald J Trump and his family,
personally.
First of all not reducing the highest income tax rate for higher earners is not
relevant to Trump. Virtually none of his income is taxable at ordinary income
tax rates .
Almost all of Trump's income comes from pass-through entities which will now be
given a windfall tax rate of 25%. It is grossly misleading to say this new
rate benefits small business. Most truly small businesses already pay at a 25%
rate. Rather the only pass entities that will receive this unjustified windfall are
the kind in which Trump is invested, including, of course, The Trump Organization.
The second major windfall for Trump and his family is the eventual elimination
of the estate tax. It is grossly misleading to present this as a benefit for
family farms and small businesses because under current law estates of up to
$11,000,000 are exempt from paying estate taxes. This change is
exclusively for the benefit of the .1% . This change alone would save the Trump family billions.
Finally, the elimination of AMT, as Rachel Maddow
revealed, is the only thing that resulted in Trump paying meaningful taxes for
that year, or any year for that matter. Eliminating it, rather than appropriately modifying it to not apply to upper middle class taxpayers, would save Trump tens of millions of dollars. AMT was intended to insure that the rich still paid taxes. While it has ensnared more than the rich; just terminating it would once again allow some of the richness among us to avoid paying any federal income taxes.
Even this simplistic analysis (of but a few salient
provisions of the GOP tax plan) clearly shows that Donald Trump and his
family personally would be a very major beneficiary of this tax bill.
Thus , "The Tax Cuts for Donald Trump Act" seems
the most honestly descriptive name for the GOP's tax plan.
Eric