As the US’s largest Wall Street banks continue to count the billions they’ve already raked in thanks to the Trump-GOP tax law, a government report published Monday shows that America’s millionaires — as well as many rich lawmakers and President Donald Trump himself — are getting ready to share a $17 billion windfall thanks to a last-minute loophole tucked into the Republican plan.
Marketed as relief for “small businesses,” the GOP tax law’s 20 percent deduction for owners of “pass-through” entities like law firms and hedge funds will overwhelmingly benefit the wealthiest Americans, according to an analysist by the Joint Committee on Taxation.
“In 2018, the lion’s share of the benefit — $17.4 billion, or 44.3 percent of the total — will go to roughly 200,000 Americans making $1 million or more who claim the pass-through deduction, the committee said. Another $3.6 billion, or 8.9 percent, will go to a similar number of taxpayers who earn $500,000 to $1 million,” NBC News noted on Monday, summarizing JCT’s findings. “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 GOP’s special “pass-through” provision became the source of tremendous controversy and outrage last year after the International Business Times ran a series of reports showing that the tax cut would personally enrich Trump, his son-in-law and adviser Jared Kushner, and several congressional leaders — including Sen. Bob Corker (R-Tenn.), who dropped his opposition to the $1.5 trillion tax bill after the provision was included in the final version.
Because the Trump Organization oversees “at least 500” pass-through businesses, “Trump could get an annual tax cut worth $23 million,” and Kushner “could see a cut of up to $17 million,” ThinkProgress noted on Monday.
JCT’s new analysis comes as Republicans are struggling to sell their plan to the majority of Americans who — unlike massive Wall Street firms and ultra-wealthy corporate executives — have reported seeing little to no benefit from the new tax law.
“At this point, it’s just brazen,” wrote Sen. Tammy Baldin (D-Wis.) of the tax law’s massive rewards for the rich.