You know who would benefit a lot from Trump's tax plan? Donald Trump.
The tax plan President Trump unveiled on Wednesday is really only a single page of bullet points, but it's already pretty clear that a big beneficiary of the proposals would be super-wealthy chieftains of private real estate empires who have children. One big winner from the proposals would be "pass-through" businesses like the Trump Organization and its hundreds of subsidiaries, where owners file business income on their individual returns — depending on how the law is written, such business owners could pay a 15 percent tax rate instead of an individual rate of up to 35 percent. "Trump is the king of pass-throughs," said Steven Rosenthal at the nonpartisan Tax Policy Center. "He has pass-through businesses everywhere."
Trump's proposal would also eliminate the estate tax and the alternative minimum tax, and the push to reduce or eliminate taxes on profits that U.S. businesses earn overseas would be a boon for the golf courses and hotels the Trump Organization owns or licenses around the world. "Commercial real estate businesses like those controlled by the Trump Organization stand to benefit greatly," too, The Wall Street Journal says, with one provision slashing "tax rates for many property businesses by more than half."
In fact, "it is striking how many of the categories listed above affect the president and his family," says Neil Irwin at The New York Times. "He is a high-income earner. He receives income from 564 business entities, according to his financial disclosure form, and could take advantage of the low rate on 'pass-through' companies. According to his leaked 2005 tax return, he paid an extra $31 million because of the alternative minimum tax that he seeks to eliminate. And his heirs could eventually enjoy his enormous assets tax-free."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Of course the precise amount Trump and his businesses (now held in trust) would save "couldn't be determined because he has declined to release his tax returns," The Wall Street Journal notes. "Still, from what is known about how his businesses are structured, experts estimate the savings would be in the tens of millions of dollars" a year. On Wednesday, Treasury Secretary Steven Mnuchin said flatly that Trump has "no intention" of releasing his tax returns, arguing that "the American population has plenty of information."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
The Christmas quiz 2024
From the magazine Test your grasp of current affairs and general knowledge with our quiz
By The Week UK Published
-
People of the year 2024
In the Spotlight Remember the people who hit the headlines this year?
By The Week UK Published
-
Crossword: December 25, 2024
The Week's daily crossword
By The Week Staff Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published