11 Ways the Wealthy and Corporations Will Game the New Tax Law

The following article by Alexandra Thornton was posted on the Center for American Progress website July 25, 2018:

Introduction and summary

At the end of 2017, congressional Republicans drafted a new tax bill and rushed it to President Donald Trump for signature in just seven weeks. No congressional Democrats were permitted in the drafting sessions, and no hearings were held after the draft legislation was released.1 As a result, no other members of Congress and no members of the public whom the bill’s sweeping provisions would affect had adequate opportunity to review the proposed changes and identify potential problems—much less offer suggestions for how to improve the bill. To the surprise of no one in Washington, the final law that emerged from this secret and partisan process overwhelmingly benefits the wealthy and large corporations. The Joint Committee on Taxation (JCT) and the Tax Policy Center—both nonpartisan organizations—have confirmed this fact.2

Provisions of the new tax law, informally known as the Tax Cuts and Jobs Act (TCJA), that directly benefit the wealthy and corporations include: lowering the top individual income tax rate to 37 percent; weakening the individual alternative minimum tax, which originally was designed to ensure that the wealthy pay a minimum amount of tax; gutting the estate tax; allowing a giveaway to wealthy pass-through business owners; and slashing the statutory corporate tax rate.

View the complete article here.