Trumps tax proposal would open an enormous loophole for his own companies

[Yo_Mama_Been_Loggin]

President Donald Trump promised a huge, bold tax reform plan within his first 100 days aimed mostly at reducing taxes for the middle class.

But on Wednesday he released a whittled down outline centered around a reduction in the corporate tax rate, which is currently at 35 percent, to 15 percent. More details of a larger tax reform package, as well as how this one can be paid for and passed, are coming later, officials promise.

More troubling than Trump’s corporate tax reduction, though, is that the plan applies this rate not just to traditional corporate entities, but also to firms known as pass-through businesses such as law firms, hedge funds, and real estate companies. These companies — including LLCs, partnerships, and S corporations — currently pay taxes through the individual code because their money shows up on owners’ own returns.

Some of these are small, but they also include enormous companies, like much of the Trump Organization itself. Pass-through business income flows mostly to high earners: 70 percent of income made by partnerships and S corporations is captured by the richest 1 percent of Americans. In 2012, 40 percent of all S corporation income was made by firms worth more than $50 million, while 70 percent of partnership income went to a similarly sized group.

https://thinkprogress.org/trump-tax-plan-pass-throughs-1090f8c9cc81

[Demtexan]

1. That is the whole point.

Money and more money.

Nothing like writing your own tax bill.

[democratisphere]

2. The taxcuts and tax reform are engineered for the benefit of drumpf and his family in addition

to the millionaires and billionaires in his cabinet.