Question

Do you think the new tax reform can make the rich richer?

Just pick one new tax rules and discuss it further.

Answer 1

In recent Republican Tax bills, it has been noticed that several tax reforms being passed which bolstered the wealth of rich peoples and making them richer. Out of the many reforms, Estate Tax Rollback will be discussed here.

Estate Tax Rollback is a boon for high net worth individual because 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 another 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 said that the repeal as a perk for farmers and small businesses owners. However, an analysis by The Washington Post 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.

Thus it can be said that rich become richer through tax reforms by Trump Administration.