President Trump’s massive tax-cut proposal would slash taxes on hundreds of businesses he and his family own.
The White House on Wednesday unveiled a proposal that would cut the top tax rate for corporations, as well as entities known as pass-through businesses, to 15 percent.
That could prove to be a windfall for the Trump Organization, the private umbrella company for hundreds of Trump real estate, licensing and other companies, many of which qualify as pass-through businesses.
Trump has refused to release his tax returns, making it impossible to know how much his businesses could save on taxes.
In addition, the White House said it would create rules to prevent wealthy individuals and corporations from taking advantage of the low pass-through rate. But because they did not provide details, it’s difficult to know how those rules would apply to the Trump companies.
We will make sure that there are rules in place so that wealthy people can’t create pass-throughs and use that as a mechanism to avoid paying the tax rate that they should” pay on personal income, Treasury Secretary Steven Mnuchin said Wednesday.
A copy of Trump’s tax return from 2005 suggests that a tax cut similar to the one Trump is proposing could have lowered his tax obligation by potentially tens of millions of dollars in a single year.
“Trump is the king of pass-throughs,” said Steven M. Rosenthal, a senior fellow at the nonpartisan Tax Policy Center. “He has pass-through businesses everywhere. This is a very large issue.”
The Trump Organization, which itself qualifies as a pass-through business, did not respond to requests for comment.