President Donald Trump’s tax bill features a tax provision that will give tax breaks of $17.4 billion in 2018 to individuals who earn at least $1 million. The new deduction is being provided to owners of “pass-through” businesses, according to a congressional report that was released on Monday.
Millionaires will be able to claim up to 20 percent off their taxes. The total overhaul will provide $40.2 billion in tax breaks for the pass-through business set up as an individual, partnership, or “S” corporations that kick income and losses to shareholders for tax purposes. The Joint Committee on Taxation estimates that a bulk of that money will be distributed in 2018.
The massive tax break will only affect 200,000 of the richest Americans who earn $1 million or more and claim the pass-through deduction.
An addition 8.9% of the tax provisions breaks will go to people who earn between $500,000 and $1 million annually.
When the provisions have completed a total of $60.3 billion will be given by 2024 with $31.6 billion going to earners who make at least $1 million per year.
Trump and his administration are attempting to put pass-through organizations on par with “C” corporations which recently benefits from a corporate tax reduction from 35 percent to 21 percent.
The tax cuts will also help 9.2 million taxpayers who earn between $100,000 and $500,000 this year. Those individuals will benefit from $15.7 billion in deductions.
By 2024, 9.7 million filers in that income range will receive $19.6 billion in tax cuts.
In comparison, people who earn less than $100,000 will split $3 billion in 2018 less than $4 billion in 2024.
Tell us again how Trump isn’t helping his rich buddies pad their wallets when he’s in office? Make no doubt about it, Trump is using his power as POTUS to curry favor once he leaves office.
Welcome to the Red State…
*A previous version of this article incorrectly stated that Trump signed the provision this week. The provision was reported this week by the Joint Committee on Taxation.
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James Kosur is the former Editor-In-Chief and co-founder of Hill Reporter. He recently served as an editor for Business Insider and various other publications. James and his partners sold Hill Reporter to a new owner in July 2019.