text: SHARE THIS ARTICLE Share Tweet Post Email 
   
   President-elect Donald Trump, who won the hearts and minds of millions of working-class voters, may help deliver a multibillion-dollar bonanza to America’s wealthiest families. 
   
   The Manhattan businessman’s election offers congressional Republicans their best chance in years to eliminate the estate tax, which he and others call the “death tax.” Abolishing it would save more than $20 billion a year for the millionaires and billionaires the tax applies to -- including the Trump family and several of the people he has chosen for his administration. 
   
   “A lot of families go through hell over the death tax,” Trump said during his presidential run. The tax’s opponents say it forces some families to sell their farms or small businesses in order to pay up. Studies suggest that only a small percentage of estates fall into those categories. 
   
   Wiping out the estate tax has been a longstanding goal for Republican lawmakers, and the party’s sweeping victories in the 2016 election have brought them thrillingly close to achieving it. But there are potential stumbling blocks. Their narrow margin in the Senate leaves few votes to spare. And Trump may have a hard time reconciling his populist campaign themes with a tax break for America’s richest. 
   
   Under federal law, the tax, which is levied at a 40 percent rate, applies only to estates worth more than $5.45 million for individuals and $10.9 million for couples. Estates worth less than that may be passed on to heirs tax-free. Last year, just 0.2 percent of estates of people who died were subject to the tax, according to estimates by the Tax Policy Center, a Washington-based research group that’s a joint venture of the Urban Institute and the Brookings Institution. 
   
   ‘The Forgotten Guy’ 
   
   Trump “campaigned as someone who’s going to help the middle class, the forgotten guy, but every policy he’s advocating -- huge tax cuts for the wealthy, estate tax -- all for the top .001 percent,” said Representative Jerry Nadler, a Democrat from Manhattan. 
   
   America’s wealthiest “hit the jackpot” with Trump’s election, he said. 
   
   Since Trump’s election, House Ways & Means Chairman Kevin Brady and Senate Finance Chairman Orrin Hatch have repeated their desire to repeal the estate tax. House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell have long supported its elimination. Passage in the Republican-led House is assured. In the Senate, a decade-long estate tax repeal can pass with 50 of 52 expected GOP senators under a special mechanism called reconciliation, while 60 votes could end it for good. 
   
   “The death tax on family farms, small businesses, ranches and estates has crippled hard-working families for far too long,” Hatch told Bloomberg News in a statement. 
   
   In 2013, 120 of the 3,780 estates subject to the tax were farms and businesses, according to the Tax Policy Center. That’s a little more than 3 percent. The same year, estates valued above $20 million paid an average tax rate of 18.8 percent -- many achieve a lower effective rate through tax-planning strategies, including giving some of their fortune away to charity. 
   
   Windfall to Leaders 
   
   At that 18.8 percent effective rate, repealing the tax would be a large windfall to the leaders-in-waiting of the Trump administration. 
   
   Trump’s estate would save $564 million, based on his estimated net worth of $3 billion. Trump disagrees with that net-worth estimate, which Bloomberg News compiled in July; he has said his net worth exceeds $10 billion. If so, his savings would increase -- to as much as $1.9 billion at an 18.8 percent effective tax rate. Trump’s transition team didn’t respond to a request for comment for this story. 
   
   Trump’s Commerce secretary choice, Wilbur Ross, might save about $545 million, based on his estimated net worth of $2.9 billion. Ross is the chairman and chief strategy officer of WL Ross & Co. LLC. Richard DeVos, the father-in-law of Trump’s education secretary choice Betsy DeVos, might save $900 million, based on his estimated $4.8 billion net worth. Richard DeVos is co-founder of Alticor Inc., the parent of closely held direct-seller Amway Corp. Linda McMahon, Trump’s pick to head the Small Business Administration, and her husband, Vince McMahon, who together founded World Wrestling Entertainment Inc., might save more than $250 million based on their shared net worth of at least $1.35 billion. The nominees’ net worth estimates were compiled by the Bloomberg Billionaires Index. 
   
   Repealing the tax would also benefit Treasury secretary nominee Steven Mnuchin, who held shares in CIT Group Inc. worth more than $100 million as of Dec. 2. And Gary Cohn, who is said to be Trump’s choice for his chief economic policy adviser, would leave his position as president of Goldman Sachs Group Inc. with $266 million of stock and awards amassed during his years at the investment bank, according to data compiled by Bloomberg. 
   
   Early Test 
   
   The looming estate-tax debate may be an early test of how Republicans deal with the electorate’s populist-over-elite mood. In interviews, Republican senators and congressmen played down the tension between Trump’s populist image and repealing the estate tax. 
   
   “Every president who’s ever had the office is going to have tension between their campaign and reality,” said Senator Lindsey Graham, a South Carolina Republican. “How he handles that tension is up to him. But there’s nothing new about a president campaigning one way and having to govern another.” 
   
   Senate Majority Whip John Cornyn, a Texas Republican, said on Thursday he expects an estate tax repeal to be included in the budget reconciliation beginning in April. Others want it to be part of a comprehensive tax overhaul package. GOP aides said many are waiting for guidance from Trump. 
   
   Some conservatives caution that upper-end tax breaks are politically problematic. 
   
   “Trump would do well to craft a tax-reform agenda that is populist in a very visible, obvious way that delivers tangible gains to middle-income voters,” said Reihan Salam, executive editor of the National Review, a conservative magazine. “I believe that coming right out of the gate and focusing on high-end tax cuts might prove costly.” 
   
   Democratic Opposition 
   
   Democrats overwhelmingly oppose reducing the tax — presidential nominee Hillary Clinton campaigned on raising its rate to 65 percent for couples worth $1 billion. “I’m against” repealing the tax, said incoming Senate Minority Leader Chuck Schumer. “To do it would sure help out the wealthiest few in America.” 
   
   GOP leaders are thus wary of over-promising. “Every tax bill is going to have a lot of tension and a lot of problems because the Democrats are not real enthused about things,” Hatch said in an interview. “We’ll just have to see. But we may be able to do some things.” 
   
   The politics of repeal may depend on which description of the tax reaches the public. A Gallup poll in March found that 54 percent of Americans favored eliminating it when told it’s a tax paid when a person dies. But researchers have found that people are more likely to support it -- and to want it to be increased -- when told who it affects. 
   
   “It becomes a question of how effective Democrats are at reframing that issue beyond this notion of a death tax,” said Norman Ornstein, a political analyst at the American Enterprise Institute. 
   
   — With assistance by Brendan Coffey ||||| Highlighted areas show what parts of President Trump’s 2005 tax return could have been affected by the new tax plan. 
   
   President Trump could cut his tax bills by more than $1.1 billion, including saving tens of millions of dollars in a single year, under his proposed tax changes, a New York Times analysis has found. 
   
   On Wednesday, the White House announced a sweeping plan to cut a variety of taxes that would overwhelmingly benefit the wealthy. The estimate of Mr. Trump’s savings is based in part on information from his 2005 federal tax return. The analysis compares what his tax burden would be under current law with what it would be under the proposal. 
   
   Mr. Trump’s 2005 return is the most recent available publicly and was released in March by David Cay Johnston on the website DCReport.org. The Times’s figure also relies on an estimate of Mr. Trump’s net worth, calculated by the Bloomberg Billionaire’s Index to be $2.86 billion. 
   
   “I don’t benefit. I don’t benefit,” Mr. Trump said on Wednesday. “In fact, very, very strongly, as you see, I think there’s very little benefit for people of wealth.” 
   
   In fact, high-income earners like Mr. Trump are likely to benefit disproportionately if the White House proposal becomes law. The estimates, calculated with the help of Robert Willens, an accounting expert, and Stephen Breitstone, a tax lawyer, provide a view into precisely how. 
   
   Savings of about $1.1 billion from repealing the estate tax 
   
   Though it would not be reflected on his income tax return, Mr. Trump’s proposal to eliminate the estate tax would generate the largest tax savings. If his assets — reportedly valued at $2.86 billion — were transferred after his death under today’s rules, his estate would be taxed at about 40 percent. Repealing the federal estate tax could save his family about $1.1 billion, though it could still be subject to New York estate taxes. 
   
   Savings of $31 million from repealing the alternative minimum tax 
   
   Line 45 of Mr. Trump’s 2005 tax return shows he paid $31.3 million because of the alternative minimum tax. 
   
   The decades-old alternative minimum tax is meant to prevent America’s wealthiest from using deductions to pay very low or no federal income tax. In 2005, it accounted for about 80 percent of Mr. Trump’s overall income tax payment. His plan to repeal the tax would save him $31.3 million. 
   
   Savings of about $16 million from taxing certain types of business income at 25 percent 
   
   Lines 12 and 17 of Mr. Trump’s tax return show the income he earned from businesses, rental real estate and other kinds of business partnerships, totaling $109.76 million. 
   
   Mr. Trump’s proposed changes could allow individuals to qualify for a significantly reduced tax rate of 25 percent on certain types of income they receive through business partnerships and similar entities. That is up from the original proposal in April of 15 percent, but far lower than the top tax rates currently faced by high-income earners of 39.6 percent. 
   
   Mr. Trump could save as much as $6.2 million on business income and $9.8 million on income from real estate and other kinds of partnerships under this plan, compared with his tax burden under current law. (In 2005, much of this taxable income was offset by a $103.2 million write-down in business losses.) 
   
   The proposal released Wednesday “contemplates” that Congress will adopt measures to prevent the wealthy from recharacterizing their income to take advantage of the new, lower rate and avoid the top personal rate. If that happens, it could have a big effect on Mr. Trump’s tax bill. 
   
   Savings of about $0.5 million from cutting the highest tax rate 
   
   Lines 7, 8a and 9a show $10.79 million in wages, taxable interest and ordinary dividends that Mr. Trump earned in 2005. 
   
   The proposal to reduce the highest tax rate to 35 percent from 39.6 percent would save high-income earners similar to Mr. Trump a relatively small amount compared with the repeal of the alternative minimum tax. The $500,000 in savings is a rough estimate because Mr. Trump has not specified income levels for his proposed tax brackets. 
   
   Increase of $3 million to $5 million in taxes from repealing most deductions 
   
   Line 40 shows Mr. Trump itemized his deductions instead of using the standard tax deduction, claiming $17 million. 
   
   Mr. Trump would probably lose most of the deductions he reported in 2005. Depending on his effective tax rate under the proposal, Mr. Trump could pay roughly $3 million to $5 million more in taxes. ||||| President Donald Trump and congressional Republicans unveiled Wednesday their plan for a massive tax overhaul. 
   
   The plan, meant to be a framework for Congress to negotiate into legislation, still has missing parts. But read on for a look at who wins and loses under the proposal as it stands now. 
   
   Winners 
   
   Corporations with high tax rates: The framework lowers the corporate tax rate to 20 percent from 35 percent. Trump initially wanted to lower it to 15 percent but said his “red line” for the rate is 20. 
   
   It also lowers the tax rate for small businesses to 25 percent. The majority of small business owners would use the extra cash to expand businesses and hire additional employees, Alfredo Ortiz, president of the nonprofit Job Creators Network, told Fox News. 
   
   Heirs to large estates: The plan eliminates the so-called death tax, or estate tax. The federal estate tax, which typically affects wealthier Americans, is a tax on property transferred after the owner’s death. 
   
   People who do their own taxes: With the framework, Republicans hoped to simplify the tax code and the way Americans file their taxes. The plan collapses the number of brackets from seven to as little as three. 
   
   High-income households: The framework includes multiple tax cuts for high-income taxpayers, including the elimination of the Alternative Minimum Tax. The AMT is a supplemental income tax meant to offset benefits a person with a high economic income could receive. 
   
   Low-income households: The plan doubles the standard deduction, which reduces the amount of taxed income, to $12,000 for individuals and $24,000 for married couples, making low-income taxpayers a winner, Steve Odland, CEO of the Committee for Economic Development, told Fox News. 
   
   It also increases the child tax credit which could be beneficial to families. 
   
   Losers 
   
   Taxpayers in high-tax states: The plan eliminates state and local tax deductions, meaning taxpayers in states with high taxes will lose out on the write-off. This impacts those in mostly blue states, such as California and New York. 
   
   Congressional New York Republicans have warned that they will not vote for a plan that includes the removal. 
   
   Accountants: Because the plan would streamline the tax process, less people would potentially need to hire tax accountants, lawyers and firms, Odland predicted. 
   
   Trump has said he wants to put H&R Block "out of business." 
   
   National debt: The plan would result in approximately $2.2 trillion of net tax cuts -- a blow to the national debt, the Committee for a Responsible Federal Budget said. 
   
   “Given today’s record-high levels of national debt, the country cannot afford a deficit-financed tax cut,” the nonprofit said. 
   
   Social programs: With the greatly reduced amount of tax collections the plan calls for, it’s possible that domestic spending on programs such as welfare programs and education could take a hit, Henry Aaron, a senior fellow at the Brookings Institution, told Fox News. 
   
   People who want a concrete plan: Aaron also said the plan was lacking in details, making it difficult for policy experts to come up with concrete estimates of the framework’s impact. 
   
   “People can make assumptions about what the details will be and make estimates based on their assumptions, but you won’t really know until the details are in,” he said.
target: – It's hard to know for sure, but President Trump may save a pretty penny if his administration's "once in a generation" tax proposal goes into effect, despite Trump insisting earlier this week the plan is "not good for me." The New York Times put Trump's estimated net worth of $2.86 billion and his 2005 federal tax return—one of the few publicly available pieces of detailed info on the president's finances—up against the current tax law and the new plan. Its findings: The president and his estate could save more than $1 billion. Experts commissioned by the Times postulate the benefits would mostly come from the elimination of the estate tax and the alternative minimum tax. Under the current estate tax, Trump's estate would take a 40% hit following an assets transfer after his death. In what it called a potential "bonanza" for Trump and his Cabinet members, Bloomberg last year estimated Trump's family would save $564 million by dumping the estate tax; the Times figures it closer to $1.1 billion, minus New York state taxes. Getting rid of the AMT, which made up about 80% of Trump's income tax payment in the 2005 return, could save him more than $31 million. Writing for the Washington Post, Philip Bump notes Trump's "vague articulation" on how he's looking out for the little guy, not the ones with fat wallets, "is not borne out by the details." Fox News offers the winners and losers under the tax proposal.