#GOPTaxScam Winners: Trump & Friends
It’s another broken promise from the President on the GOP tax bill: while he claims that the GOP tax scam would not help him and his “wealthy friends,” that couldn’t be further from the truth.
Just days ago, President Trump said: "This is going to cost me a fortune, this thing, believe me. This is not good for me… I have some very wealthy friends, not so happy with me. But that's OK."
But this morning’s New York Times lays out which industries are the biggest winners in the bill. Among them? The real estate business. From the Times:
“After a frenzy of congressional action to rewrite the tax code, salesclerks and chief executives are calculating their gains. Business was treated with the everyone’s-a-winner approach that ensures no summer camper goes home without a trophy.”
“House and Senate Republicans, in their divergent bills, both offered steeply reduced rates to corporate giants, partnerships and family-owned firms across the board. But when it came time to eliminate special breaks or impose tighter standards, real estate was generally excused from the room.”
“The real estate industry ended up with an even more generous depreciation timetable, allowing owners to shelter more income. And in a break from previous practice, rental and mortgage-interest income qualifies for a lower tax rate, the kind of special treatment traditionally reserved for long-term capital gains and certain qualified dividends. ”
“Real estate investment trusts, known as REITs, have extra cause for celebration. They are companies that make money by owning, financing and operating real estate. Both the Trump Organization and Kushner Companies, the family real estate firm partly owned by Mr. Kushner, have important deals with such trusts. ”
“The Republican proposals sharply lower the top tax rate on the income that REITs and other businesses pass through to their owners and shareholders. Currently, those investors must pay taxes on that income at rates as high as 39.6 percent. Under the Senate provision, it would drop to 29.6 percent. (The House bill drops the rate even lower, to 25 percent.) ”
“That’s a big savings, and a big advantage. Those receiving mortgage-interest income outside a REIT would have to pay taxes based on ordinary rates. ”
“House and Senate Republicans are still wrangling over the final version, and every comma is subject to change. But to some tax experts, an unlevel playing field that gives certain types of business and structures advantages over others is a bigger concern than a tax break for real estate or any other industry.”
Just days ago, President Trump said: "This is going to cost me a fortune, this thing, believe me. This is not good for me… I have some very wealthy friends, not so happy with me. But that's OK."
But this morning’s New York Times lays out which industries are the biggest winners in the bill. Among them? The real estate business. From the Times:
“After a frenzy of congressional action to rewrite the tax code, salesclerks and chief executives are calculating their gains. Business was treated with the everyone’s-a-winner approach that ensures no summer camper goes home without a trophy.”
“House and Senate Republicans, in their divergent bills, both offered steeply reduced rates to corporate giants, partnerships and family-owned firms across the board. But when it came time to eliminate special breaks or impose tighter standards, real estate was generally excused from the room.”
“The real estate industry ended up with an even more generous depreciation timetable, allowing owners to shelter more income. And in a break from previous practice, rental and mortgage-interest income qualifies for a lower tax rate, the kind of special treatment traditionally reserved for long-term capital gains and certain qualified dividends. ”
“Real estate investment trusts, known as REITs, have extra cause for celebration. They are companies that make money by owning, financing and operating real estate. Both the Trump Organization and Kushner Companies, the family real estate firm partly owned by Mr. Kushner, have important deals with such trusts. ”
“The Republican proposals sharply lower the top tax rate on the income that REITs and other businesses pass through to their owners and shareholders. Currently, those investors must pay taxes on that income at rates as high as 39.6 percent. Under the Senate provision, it would drop to 29.6 percent. (The House bill drops the rate even lower, to 25 percent.) ”
“That’s a big savings, and a big advantage. Those receiving mortgage-interest income outside a REIT would have to pay taxes based on ordinary rates. ”
“House and Senate Republicans are still wrangling over the final version, and every comma is subject to change. But to some tax experts, an unlevel playing field that gives certain types of business and structures advantages over others is a bigger concern than a tax break for real estate or any other industry.”