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From private school tax breaks to bigger inheritances, 7 ways rich people win big if tax reform passes

Several aspects of the House Republican's tax plan could be a boon for wealthy Americans.

  • The GOP's proposed tax reform bill will give a boost to the wealthiest in the country.
  • Repealing the estate tax and the alternative minimum tax (AMT) are just two of the ways rich Americans could benefit.
  • Meanwhile, the typical American family will get a tax cut of $1,182.

But the GOP's tax reform proposal also gives a few boosts to the wealthiest in the country, including the proposed repeals of the estate tax and the alternative minimum tax (AMT).

, in November. And early Saturday, the Senate passed their own version of tax reform legislation

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Business Insider outlined seven different perks for the wealthy from the House Republicans' bill below.

Higher-income taxpayers will get the largest tax cuts.

The House GOP's legislation would reduce taxes on average for all income groups in 2018 as well as ten years from now, but higher-income households would get the largest cuts — both in terms of dollar amounts and as a percentage of after-tax income, according to the nonpartisan Tax Policy Center.

Taxpayers in the top 1% — defined as those making over $730,000 — would receive 20% of the total tax cut, the think tank found. They'd get an average cut of $37,000, which translates to about 2.4% of their after-tax income.

The estate tax, which benefits about 5,500 taxpayers a year, will be eliminated.

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Trump has touted the repeal as a perk for farmers and small businesses owners. An analysis by The Washington Post, however, 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.

The AMT, which increased Trump's leaked 2005 tax bill from $5.3 million to $36.5 million, will be repealed.

Private school tuition could be paid through a 529 plan.

Families would be able to withdraw up to $10,000 per year from their 529 plans, tax-advantaged college savings accounts, and use it for tuition and other expenses at K-12 schools.

That effectively creates a benefit for people who would be sending their kids to an expensive private school, anyway.

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Rich people will still be able to reduce their taxes by donating to charity.

The House GOP's bill eliminates most personal itemized deductions and many credits, but the only deduction preserved explicitly in the plan is for charitable gifts and edited home-mortgage interest.

Charitable deductions are a popular strategy for super wealthy people to lower their tax bills.

"Hedge fund guys," as Trump called them, and other fund managers will still have access to a loophole that allows them to pay a lower tax rate on investment profits.

With the carried interest provision, investment fund managers can pay a lower capital gains tax rate on their share of their fund's profit. Usually it's around 20%, below the 39.6% rate. The loophole (so far) remains unchanged in the House and Senate bills.

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Notably, during his campaign, Trump said he would close the loophole.

The stock market could go up thanks to a one-time repatriation tax included in the bill.

The one-time repatriation tax is designed to incentivize US-based companies that do business overseas to bring those profits back stateside.

BONUS: The Senate bill would keep the home-mortgage-interest deduction.

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Our post walks through the House GOP's bill. However, the Senate's version includes another detail that would also benefit the wealthy: it keeps the home-mortgage-interest deduction, under which

The House version, meanwhile, edits that limit down to $500,000.

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