Donald Trump's family could save over $1bn under his new tax bill

President Donald Trump applauds next to his soon Barron, his wife Melania, son-in-law Jared Kushner, and daughters Ivanka and Tiffany during election night on 9 November 2016: MANDEL NGAN/AFP/Getty Images
President Donald Trump applauds next to his soon Barron, his wife Melania, son-in-law Jared Kushner, and daughters Ivanka and Tiffany during election night on 9 November 2016: MANDEL NGAN/AFP/Getty Images

The House just passed a tax reform bill that could benefit the family of US President Donald Trump to the tune of $1bn in savings.

Mr Trump has repeatedly insisted the Republican plan is “not good for me. Believe me,” as he said on 27 September but an NBC News analysis shows otherwise.

While Mr Trump on his own would save $20m, his heirs like White House staff members Ivanka Trump and son-in-law Jared Kushner could save up to $1.1bn.

The most savings for the family would come from the repeal of the estate tax - or the tax that is paid on property transferred to individuals when someone dies - according to the analysis based on Mr Trump’s 2005 tax returns that were leaked earlier this year and his net worth.

The House expects the repeal of the estate tax to go into effect in 2024.

Given that Mr Trump’s worth is $2.86bn at this point, he could save $400m for every $1bn assets.

The House bill also seeks to repeal the Alternative Minimum Tax, which is a supplemental tax alongside the regular income tax.

It was originally meant to “prevent perceived abuses by a handful of the ultra rich” and requires people to calculate what they owe under the regular income tax rules and under the AMT rules, according to the Tax Policy Center at the Urban Institute.

About 5 million American taxpayers must pay the higher amount of the two.

Per the NBC News analysis which took into account higher taxes on investment income and fewer deductions allowed than 2005, the Trumps would save approximately $23m if the AMT is repealed.

Mr Trump has yet to release any tax returns past 2005, which was actually leaked anonymously to MSNBC.

Senate Republicans are drafting their own version of the House bill, which also cuts the number of tax brackets and reduces corporate taxes.