“I’m doing the right thing, and it’s not good for me, believe me,” — President Donald Trump on proposed tax cuts (Sept. 27, 2017)
The president might have been better off, or least more accurate in his characterization of his proposed tax cut, by paraphrasing the poet Elizabeth Barrett Browning (1806 – 1861): Oh, tax cuts! “How do I love thee? Let me count the ways.”
Despite denying that he would personally benefit from the tax blueprint released Wednesday by his administration and congressional Republicans, it seems there are several ways in which the occupant of the Oval Office would simply love this deal.
According to Federal Election Commission filings, President Trump owns or controls more than 500 limited liability companies, or LLCs.
The new plan calls for the tax rate on so-called “pass-through” entities, such as LLCs, to be cut from the highest marginal personal rate of 39.6 percent (it’s actually more than 43 percent when taking into account the Obamacare surtax on the nation’s highest earners) to only 25 percent.
The proposal claims that only certain pass-through entities will get this break and it will exclude entities that disguise regular, recurring, wages as business income.
It appears likely the new structure will leave the president’s real estate and licensing entities qualifying for the much lower rate, while the question remains whether doctors, accountants and other such entities will continue paying the highest marginal rate.