1134 GMT September 22, 2020
President Donald Trump’s tax plan could put $757 million in his own pocket over the likely 10-year lifetime of the proposal, just from the reduction in taxes on so-called “small businesses.”
The vast majority of Trump’s income in the past year came from “limited liability companies” he owns, which are exactly the sort of businesses that would see their maximum tax rate fall from 39.6 percent currently to 25 percent.
“This will be the lowest top marginal income tax rate for small- and medium-sized businesses in more than 80 years,” Trump said Friday at the National Association of Manufacturers. “And it will be rocket fuel for our economy.”
Whether that rate cut would actually fuel economic growth is not clear. What is clear, though, is the scale of the tax savings that would personally benefit Trump: $75.7 million per year, based on a HuffPost analysis of the president’s most recent financial disclosure.
Should Trump’s businesses continue to profit at the same level over a decade, it would mean a total savings of more than three quarters of a billion dollars.
“Clearly it’s a big boon to him personally,” said Susan Harley, a tax policy expert at the liberal-leaning watchdog group Public Citizen. “Anything that reduces that rate we know off the top will benefit him.”
The White House did not respond to HuffPost queries about Trump’s potential windfall from his proposal, and about why the president nevertheless continues to claim that he would not personally benefit from it, and that wealthy people generally would not be getting a tax cut.
In his speech detailing the plan in Indiana this week, Trump said: “I’m doing the right thing, and it’s not good for me. Believe me.”
Critics wondered how Trump could make such a claim, given his many boasts about his wealth and the sworn financial disclosures he has filed since he began running for president two years ago.
This article was published on Huffingtonpost.com.