- The House GOP's proposed tax reform bill will give a boost to the wealthiest in the country.
- Repealing the estate tax and the alternative minimum tax (AMT) are just two of the ways rich Americans could benefit.
- Meanwhile, the typical American family will get a tax cut of $1,182.
House Republican leaders want Americans to know that tax reform is for middle-income earners, noting that the typical American family will get a tax cut of $1,182.
But the GOP's tax reform proposal also gives a few boosts to the wealthiest in the country, including the proposed repeals of the estate tax and the alternative minimum tax (AMT).
Business Insider outlined seven different perks for the wealthy from the House Republicans' bill below.
Higher-income taxpayers will get the largest tax cuts.Chip Somodevilla/Getty Images
The House GOP's legislation would reduce taxes on average for all income groups in 2018 as well as ten years from now, but higher-income households would get the largest cuts — both in terms of dollar amounts and as a percentage of after-tax income, according to the nonpartisan Tax Policy Center.
Taxpayers in the top 1% — defined as those making over $730,000 — would receive 20% of the total tax cut, the think tank found. They'd get an average cut of $37,000, which translates to about 2.4% of their after-tax income.
The estate tax, which benefits about 5,500 taxpayers a year, will be eliminated.Shutterstock/Philip Lange
The House GOP plan would eliminate the estate tax, under which people who give money or assets such as real estate or stocks to their children or other heir when they die have to pay a 40% tax. Currently, the tax only applies to estates larger than $5.49 million, but the House plan would double that threshold to over $10 million. Then, the plan would phase out the tax completely after six years.
Trump has touted the repeal as a perk for farmers and small businesses owners. An analysis by The Washington Post, however, found that only 5,500 estates out of about 3 million will pay any estate tax in 2017. And within that 5,500, only about 80 are farms or small businesses.
The AMT, which increased Trump's leaked 2005 tax bill from $5.3 million to $36.5 million, will be repealed.REUTERS/Jonathan Ernst
The alternative minimum tax (AMT), which was enacted in 1969 to "prevent taxpayers from escaping their fair share of tax liability through tax breaks," would be eliminated.
Most of the people affected by the AMT earn over $500,000, according to Tax Policy Center. It is more likely to affect those who are married, have large families, or live in high-tax states.
Trump's leaked tax bill from 2005 has been shown to have increased to $36.5 million from $5.3 million because of AMT.
See the rest of the story at Business Insider