New GOP Tax Bill Was Written To Cut Trump’s Taxes: Report
Republicans plan to lower corporate tax rate from 35 percent to 20 percent, according to a summary of their new Tax bill obtained by The Hill Thursday. The legislation would also lower the top rate for noncorporate “pass-through” businesses from 39.6 percent to 25 percent.
The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would slash rates for businesses and eliminate a number of tax breaks for individuals and calls for the repeal of the Alternative Minimum Tax.
Republicans are still searching for their first major legislative victory since President Trump took office, and hope that sweeping tax cuts for corporations will help their standing with voters. GOP leaders are aiming for the measure to pass the House by Thanksgiving.
But a government ethics watchdog argued Thursday morning that the newly released Republican tax bill was written to lower President Trump’s taxes.
Citizens for Responsibility and Ethics in Washington (CREW), a nonprofit that aims to reduce the influence of money and politics and foster government accountability, cited the bill’s intention to repeal the Alternative Minimum Tax.
“In 2005, the one year of Trump’s taxes we’ve seen, the Alternative Minimum Tax cost him an extra $31 million,” the organization, which is linked to Democratic operative David Brock, tweeted. “This bill was written for him.”
In 2005, the one year of Trump's taxes we've seen, the Alternative Minimum Tax cost him an extra $31 million. This bill was written for him. https://t.co/8nyYHyW8Pg
— Citizens for Ethics (@CREWcrew) November 2, 2017
The Alternative Minimum Tax applies to certain high-income individuals, and helps close loopholes to ensure those people pay at least a minimum amount of tax, according to the Internal Revenue Service.
Trump broke with tradition and refused to release his tax returns while running for president. But in March, MSNBC’s Rachel Maddow revealed Trump’s 2005 Form 1040.
The document showed Trump reported $150 million in income and paid $38 million in federal taxes, largely because of the Alternative Minimum Tax. By eliminating the AMT, the president will avoid paying millions in taxes.