Home BUSINESS NEWS Special Trump tax provision gives $17 billion break to millionaires, gov’t report...

Special Trump tax provision gives $17 billion break to millionaires, gov’t report finds


By 2024, the tax deductions will amount to $60.3 billion, and those making $1 million or more will account for $31.6 billion (52.4 percent) of that.

The numbers don’t come as a shock to those who closely follow tax debates in Washington.

“The distribution of benefits from the pass-through deduction largely reflects the distribution of income from these businesses,” said Mark Mazur, director of the nonpartisan Tax Policy Center. “Pass-through income from partnerships, S-Corps and LLCs is highly concentrated toward the top of the income distribution.”

Trump and congressional Republicans created the new deduction to try to achieve relative parity between pass-through and “C” corporations, which benefit in a reduction of the corporate tax rate from 35 percent to 21 percent.

While the dollar-value of deductions skews toward the top, it’s not only the very wealthiest pass-through owners who will be able to pay less in taxes.

About 9.2 million taxpayers who make $100,000 to $500,000 this year will account for $15.7 billion in deductions, and roughly 9.7 million filers in that income range will get $19.6 billion in 2024, the Joint Committee on Taxation reports. Their counterparts who earn less than $100,000 are in line to share about $3 billion in 2018 and a little less than $4 billion in 2024.

Article Source : https://www.nbcnews.com/politics/politics-news/special-trump-tax-provision-gives-17-billion-break-millionaires-gov-n868511?cid=public-rss_20180424