The disastrous Republican bill that will cut taxes mainly for corporations and the richest of the rich narrowly passed Congress, despite opposition from many corners of the country.
Republicans claim it will raise wages, give middle-class families a big tax cut and boost economic growth. However, the truth is with the passage of $1.5 trillion tax overhaul, President Donald Trump is finally on the brink of his first major legislative victory — one that will personally save him millions.
An analysis by The Center for American Progress, a Washington think tank, revealed Trump and six members of his inner circle will be the actual beneficiaries of the tax bill.
Under the new law, Trump is estimated to save about $11 million to $15 million annually. In fact, his heirs are also going to benefit from the new tax bill. An amendment to the estate tax is expected to save nearly $4.5 million to his inheritors.
The president will reportedly save the huge amount from his earnings in pass-through entities. More than 90 percent of companies in the United States are pass-through businesses — which are taxed under the individual income tax code unlike public corporations.
The sweeping tax bill cuts the top rate on “qualified” pass-through business income from 39.6 percent under current law to 29.6 percent.
Some other notable names from the Trump camp will also reportedly save millions.
Trump’s son-in-law and senior adviser Jared Kushner will save $5 million to $12 million. Secretary of Education Betsy DeVos is also estimated to save $2.7 million.
Commerce Secretary Wilbur Ross, Administrator of the Small Business Administration Linda McMahon, Treasury Secretary Steve Mnuchin and Secretary of State Rex Tillerson will also benefit with millions of dollars of tax cuts.
Trump and other wealthy Republicans are also estimated to be the winners under the corporate tax cuts. The GOP bill dramatically slashes the corporate tax rate to 21 percent from 35 percent and it will be permanent, unlike the tax cuts for citizens, which will expire in several years.
“I think that the American people, whether they receive a tax increase or tax cut from this bill, are outraged that President Trump, his cabinet, and members of Congress stand to receive big payouts from this tax bill. The extent of the self-dealing became especially apparent when a last-minute provision benefiting the real estate industry was inserted at the last minute,” said Seth Hanlon, a senior fellow at the think tank.
He added, “There is no doubt that Trump is getting major new tax cuts from this bill — at the same time as it preserves special loopholes, like the deductions Trump reportedly takes on his golf courses. These are just one illustration of the venality and corruption behind this bill.”
The tax bill is under fire from Democrats and most average Americans also don’t buy the idea that it is beneficial for them.
A recent poll found more people have developed a dislike for the new tax bill over the past two months. Only 24 percent of Americans polled said it was a “good idea,” while 41 percent believed it was a “bad idea.”
With the legislative win, Trump has misused his power to achieve personal gains and that too at the expense of the citizens of the United States.
Thumbnail Credits: Reuters, Jonathan Ernst