Take a real world example. The state of Kansas does not tax pass-through income, and its highest-paid public employee, Bill Self, the coach of the University of Kansas basketball team, is paid $4.8 million per year through an LLC. Under current federal law, a typical head of household earning $4.8 million might have to give more than a third of his income, or about $1.8 million, to the IRS. Under Trump's plan, somebody like Bill Self could save about $1 million in taxes by setting up a pass-through business, thus paying the same marginal rate as a household making about $50,000.The highest-paid public employee in the state has his salary paid to an LLC, and thus he pays zero dollars in state income tax. Brilliant, Sam Brownback, brilliant. It just blows me away that so many people who are struggling to get by are more than happy to support a billionaire who is going to massively cut his own taxes while destroying the federal budget. And those same struggling people will get negative returns once budget cuts to stem massive deficits are factored in.
Wednesday, April 26, 2017
The Trump Tax Cuts In One Chart
Via The Atlantic: