Tax Cuts Benefit the Ultra Rich, but Not the Merely Rich<br />Can someone explain how that is fair?”<br />In the world of public company chief executives — many based in states like New York, New Jersey, Massachusetts<br />and California, where a big chunk of the largest companies in the country reside — several told me they expected their federal taxes to increase substantially because, unlike some of their wealthy peers in other industries, they cannot turn themselves into pass-through companies or other tax-dodging entities.<br />It is the “pretty rich” right below that level that may get hit: the W2 employee making several hundred thousand dollars to millions of dollars a year with high state and local taxes<br />that will not be fully deductible may see a higher tax bill.<br />You’re probably asking how a tax plan that seems riddled with loopholes to benefit those who are well off —<br />and the Trump family — can be raising the tax bill of the wealthy when we’ve been told the opposite.<br />According to the Tax Policy Center, 5 percent of taxpayers would pay more in taxes in 2018; 9 percent in 2025<br />and 53 percent in 2027, if the plan is signed into law.<br />The two most popular games for the very wealthy will be running their income through pass-through companies, which pay a lower rate, or using a corporation to pay themselves a tiny salary<br />and huge dividends, which will be taxed at the lower capital gains rates.<br />That deduction is almost doubled under the new plan, to $24,000 from $13,000,<br />but it is still far below the costs of some of the services, which often are in the hundreds of thousands or even millions of dollars.
