Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

The new nonpartisan analysis comes as Republicans are struggling to sell their plan to the majority of Americans who—unlike massive Wall Street firms and ultra-wealthy corporate executives—have reported seeing little to no benefit from the new tax law. (Photo: Drew Angerer/Getty Images)

Report Shows Nation's Richest—Including Trump—About to Enjoy $17 Billion Windfall Thanks to Huge Tax Loophole

"At this point, it's just brazen."

Jake Johnson

As America's largest Wall Street banks continue to count the billions they've already raked in thanks to the Trump-GOP tax law, a government report published Monday shows that America's millionaires—as well as many rich lawmakers and President Donald Trump himself—are getting ready to share a $17 billion windfall thanks to a last-minute loophole tucked into the Republican plan.

Marketed as relief for "small businesses," the GOP tax law's 20 percent deduction for owners of "pass-through" entities like law firms and hedge funds will overwhelmingly benefit the wealthiest Americans, according to an analysist by the Joint Committee on Taxation.

"In 2018, the lion's share of the benefit—$17.4 billion, or 44.3 percent of the total—will go to roughly 200,000 Americans making $1 million or more who claim the pass-through deduction, the committee said. Another $3.6 billion, or 8.9 percent, will go to a similar number of taxpayers who earn $500,000 to $1 million," NBC News noted on Monday, summarizing JCT's findings. "By 2024, the tax deductions will amount to $60.3 billion, and those making $1 million or more will account for $31.6 billion (52.4 percent) of that."

The GOP's special "pass-through" provision became the source of tremendous controversy and outrage last year after the International Business Times ran a series of reports showing that the tax cut would personally enrich Trump, his son-in-law and adviser Jared Kushner, and several congressional leaders—including Sen. Bob Corker (R-Tenn.), who dropped his opposition to the $1.5 trillion tax bill after the provision was included in the final version.

Because the Trump Organization oversees "at least 500" pass-through businesses, "Trump could get an annual tax cut worth $23 million," and Kushner "could see a cut of up to $17 million," ThinkProgress noted on Monday.

JCT's new analysis comes as Republicans are struggling to sell their plan to the majority of Americans who—unlike massive Wall Street firms and ultra-wealthy corporate executives—have reported seeing little to no benefit from the new tax law.

"At this point, it's just brazen," wrote Sen. Tammy Baldin (D-Wis.) of the tax law's massive rewards for the rich.


Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.

Appeals Court Orders Release of Secret Memo Barr 'Used to Undercut the Mueller Report'

While the DOJ has not announced whether it will appeal, a spokesperson for the watchdog behind the case said that "the American people deserve to know what it says. Now they will."

Jessica Corbett ·


Trans Girls in Utah Can Play School Sports After Judge Blocks Discriminatory Law

"Our daughter just wants the same chance as other kids to make friends and play on the team she loves," said one parent plaintiff. "Today's ruling gives her the opportunity to do that."

Brett Wilkins ·


'Deeply Dangerous Nonsense': Treasury Dept. Debunks GOP Lies About 87,000 Armed IRS Agents

The intensity with which Republicans "are coming at this is really a testament to how important these resources are going to be—because there are many wealthy tax evaders that stand to lose a lot," said one official.

Kenny Stancil ·


Michigan Judge Blocks Enforcement of 'Dangerous and Chilling' 1931 Abortion Ban

The decision is a "welcome" development "but our work continues," said Gov. Gretchen Whitmer, vowing to use "every tool in my toolbox to fight like hell for women and healthcare providers."

Jessica Corbett ·


Tlaib Says Biden Must 'Hold Israel Accountable' for Raid on Palestinian Rights Groups

"The silence by our country is enabling more death and violence," said the U.S. congresswoman.

Jake Johnson ·

Common Dreams Logo