The Middle Class and Poor’s Loss under GOP Tax Bill is Trump’s Gain
That’s what Hillary said during the campaign and though she wasn’t listened to by the press-‘But what about your emails, Secretary Clinton?’-she was right: when Trump wins we lose.
That’s certainly the case with the new fake GOP tax reform bill which is actually ACA repeal back from the dead.
Senate version of the faux tax reform bill is actually ACA repeal back from the dead and its dangerously close to passing https://t.co/XTVwyJNpxJ
— mike sax (@mikesaxny2) November 30, 2017
Meanwhile Trump doing what he does best-lying about what the tax bill does. He falsely claims it will cost him a fortune:
“This is going to cost me a fortune, this thing, believe me. This is not good for me. . . . I think my accountants are going crazy right now.”
— President Trump, remarks on tax plan, St. Charles, Mo., Nov. 29, 2017
“There have been many times when we have thrown patently ridiculous claims made by the president into our database of false and misleading claims, only to decide later that we need to do a full fact check because the president keeps repeating the falsehood.”
“With the tax bill passed in the House and pending in the Senate, this is one of those moments. Back in September, Trump claimed he would not benefit from the tax plan, twice in offhand remarks with reporters and once in a speech. “It’s not good for me,” he claimed. It seemed so silly that it was not worthy of a full fact check.”
But now, Trump has doubled down on the claim — saying the tax bill would “cost me a fortune, believe me.” He even asserted that his accountants “are going crazy now” but that he didn’t care because he is now the president and “this is a higher calling.”
“If anyone believes this line, we have a bridge in Brooklyn available for them. Let’s do a tour of Trump’s taxes.”
Glenn Kessler then lists a multiple ways this WILL benefit Trump.
1. The end of the Alternative Minimum Tax
“Both bills would repeal the alternative minimum tax, which is designed to make sure that the wealthy pay at least some tax. The 2005 return shows that the AMT increased Trump’s tax bill from about $5.3 million to $36.5 million. So at least in that tax year, he potentially could have saved $31 million. (The capital gains tax for people in Trump’s income bracket has been increased since then, so the savings would be lower now.)”
2. Business Income
“The House bill would dramatically slash taxes from a top rate of 39.6 percent to 25 percent on “pass-through” entities, which are companies that direct income through the individual income tax code and not the corporate tax code. The Senate bill currently is less generous, allowing a deduction of 17.4 percent of their income from taxable income, but lawmakers are discussing increasing the deduction to 20 percent, which would increase the benefit to Trump. (Effectively, this would be akin to a 30.8 percent top tax rate.)”
Certainly his 2005 return shows he would have benefitted markedly from this huge cut.
3. Income Tax rate. The GOP tax bill also sharply cuts the top individual tax rates which will also benefit Trump.
“The House bill does not reduce the top income tax rate, but the Senate offers a small reduction to 38.5 percent. The other rate changes would make only a modest difference to Trump, who at least in 2005 earned relatively little (about $10.8 million) from wages, interest and dividends. Under the Senate bill, he would see a reduction of about $100,000.”
4. Estate Tax
“We would be remiss if we did not include the impact of possible repeal of the estate tax on the Trump family. While Trump would not personally benefit, it could make a big difference to his children.”
“The House would completely repeal the estate tax, even eliminating any tax on capital gains. The Bloomberg Billionaires Index says Trump is worth $2.86 billion, so at a 40 percent tax rate, that would be a savings of $1.1 billion. (If you believe Trump’s questionable claim that he’s worth $10 billion, that would be a savings of $4 billion.)”
“The Senate bill would only increase the amount of estate exempt from taxation, from about $11 million for couples to $22 million. That would save the Trump heirs only about $4 million.”
Kessler argues that Trump could be hurt by SALT repeal-state and local income tax credit repeal.
“In 2005, Trump had itemized deductions worth $17 million, but we do not know how much represented state and local taxes and how much represented mortgage and charitable contributions. (The mortgage and charitable deductions are relatively untouched, but the House would reduce the cap on the size of new mortgages from $1 million to $500,000.)”
“If we assume roughly three-quarters of Trump’s itemized deductions were from state and local taxes, the tax bill would increase his taxes by $5 million.”
But this is more than offset by 1–4 that all benefit him.
“When you add it up, Trump would have saved $42 million on his 2005 taxes under the House bill and $35.1 million under the Senate bill. A big part of the savings is from elimination of the alternative minimum tax, and of course we do not know how often he was subject to it.”
“But the fact that the president has refused to release his tax returns should not allow him to make claims about his taxes without offering documented proof. The information we do have — the partial 2005 return — shows his claim of losing a fortune on the tax bill is poppycock.”
As opposed to the average taxpayer who loses by SALT repeal and doesn’t make up for it elsewhere.
Yup-when he wins we lose.
P.S. I’m Mike Sax, I’m running for Congress in the NY 2nd District and I’m a Hillary Clinton Democrat.
Meeting her recently was one of the biggest honors in my life to stand next to such a fine public servant and trailblazer. She seemed to like our Impeachment Train campaign t shirts too!
Think of the shirt as a one time investment in restoring legitimacy to this country.
And please donate so we can compete with Peter King’s $4 million. I know no lobbyists or millionaires like Peter King. Small donations are the engine of the Mike Sax NY2 campaign. Together we can do it. Because we must.