Trump has repeatedly claimed that the GOP tax bill would hurt him and cost him a “fortune,” but a new analysis by Forbes magazine finds that Trump would likely save up to $11 million a year from a single rule change.
The Forbes estimate is based on information from a leaked portion of Trump’s tax returns from 2005, the most recent for which we have evidence of how his tax filings break down.
The savings will come from earnings in pass-through entities—businesses that are not subject to corporate taxes but instead pass income to their owners, who pay individual rates. In 2005, Trump declared $67 million in income that appears to have come from pass-through companies, according to four tax experts who reviewed the filing on behalf of Forbes. In addition, he earned another $42 million categorized as business income, which may or may not have come from pass-through entities, experts said.
Boil it down and it works like this: Trump should save about 10% of all business income that he can push into pass-through entities (surely most, if not all, of his day-to-day profits — capital gains and any salary would be treated differently.)
“You’ve given the majority of his income a tax break,” said New York City real estate accountant Kenneth Weissenberg. “He’s benefiting, not just from the direct tax benefits but the increase in the value of his holdings.”
An independent NBC News analysis of Trump’s 2005 tax return estimated that the combined estates of both Trump and first lady Melania Trump would save about $1 billion from the repeal of the estate tax.
The tax expert also estimated that Trump would save $22.6 million with the repeal of the alternative minimum tax after capital gains taxes were taken into account.
The White House on Tuesday admitted that Trump stands to benefit from the GOP tax bill.