Tags: Trump Tax Reform | tax bill | punishes | high wage earners | rewards | pass through corporations

NYT: Tax Bill Not Fair to All Millionaires

Image: NYT: Tax Bill Not Fair to All Millionaires

By    |   Monday, 06 November 2017 08:28 PM

The GOP tax reform bill will help some millionaires and hurt others, according to a report in The New York Times.

High-earning owners of certain businesses will receive large tax breaks while millionaires who only earn money from their high-salaried jobs will see a tax increase because of a jump in personal tax rates.

House Republicans released their massive tax reform bill last Thursday. The legislation slashes the corporate tax rate, lowers tax rates for most Americans and adds $1.5 trillion to the nation’s debt over the next decade. House Speaker Paul Ryan touted the bill’s purpose as a “middle-class tax cut, to give people more take-home pay.”

But experts don’t agree with that analyses. The Institute on Taxation and Economic Policy on Monday said the richest Americans benefit most from the bill, as some of the provisions for the middle class “are designed to expire or become less generous over time.”

Benefits for the wealthy, on the other hand, become more generous over time.

Thomas Barthold, the Joint Committee on Taxation’s chief of staff, said Monday during the bill’s debate before the House Ways and Means Committee that 38 million working-class Americans would see their taxes rise.

High-income taxpayers who earn money paid for work, like professional athletes, are stuck with the top personal income tax rate of 39.6 percent. But people who earn their money through pass-through businesses, such as sole proprietorships, partnerships, limited liability companies (LLC) and S-corporations, will see their rate cut from 39.6 percent to 25 percent on some income.

Most of the businesses in the U.S. are set up as pass-through businesses, where profits pass through to owners untaxed and later reported as income on individual returns. Pro sports teams, dry cleaners and many of President Donald Trump’s personal holdings, for example, operate that way.

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The GOP tax reform bill will help some millionaires and hurt others, according to a report in The New York Times.High-earning owners of certain businesses will receive large tax breaks while millionaires who only earn money from their high-salaried jobs will see a tax...
tax bill, punishes, high wage earners, rewards, pass through corporations
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2017-28-06
Monday, 06 November 2017 08:28 PM
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