Most of Trump’s income comes from his “small” enterprises but their rate of proposal quickly reduces.
Washington – The tax plan of Donald Trump could bring him $757 million over the period of 10 years of the proposal from slashing of the taxes on “small” businesses. Trump owns several “limited liability businesses” which brought him the vast majority of his income last year. These are the type of companies that would experience the maximum reduction of tax rates from 39.6% to 25%.
- Bonus: Learn about business debt consolidation.
The President said during the meeting at the National Association of Manufacturers last Friday that this is going to be the lowest top marginal rate of income taxes for small businesses and medium-sized companies in more than 70 years. “This should work as rocket fuel for the nation’s economy,” Trump said.
It’s not yet clear whether the cut of tax rates will really fuel the growth of the economy. Although it is more certain that such tax savings would personally benefit the President: according to the HuffPost analysis of his recent financial disclosure, Trump would get $75.7 million every year.
In other words, this change would mean great savings for Trump provided that his businesses keep on being profitable and continue to work at the same level for at least 10 years. “Of course, it would be beneficial to him in the first place. Anything that slashes the tax rates dramatically will benefit him personally,” mentions Susan Harley, a tax policy specialist from the Public Citizen group.
At the same time, the White House hasn’t replied to the queries of HuffPost concerning the President’s prospective windfall from this situation yet. Donald Trump keeps on stating that he wouldn’t personally benefit from reducing the tax rates and that rich people wouldn’t get a tax cut at all.
P.S.: Read about the tax credits for small business owners.