Top five tax changes for the wealthy
A view of the US Capitol in Washington DC on June 30, 2025.
Jim Watson | AFP | Getty Images
According to tax experts, the rich will see a series of new tax reductions in President Donald Trump’s “Big Beautiful bill”.
According to the Tax Policy Center, the taxpayers who earn $ 1 million or more are expected to see an increase of approximately 3% in the post -tax revenue in the senate version of Trump’s bill. This is compared with an average of approximately 2.5%throughout the country. In terms of dollars, the millionaire winners will see an average post -tax increase in income in 2026, According to the Tax Policy Center.
Almost all basic provisions of the 2017 tax reduction are expected to be expanded in the last design that has been transferred to the Parliament on Thursday and now turns to Trump’s desk, and some provisions become permanent. In the bill, a few new tax reductions or benefits have been added, especially for investors in small enterprises – for those at the top.
The draft is the five most important changes that affect high earnings and rich.
SALT
Surprisingly, the Senate bill is largely followed by the Parliament’s state and local tax or salt, border increase version. Existing $ 10,000 on salt cuts While the income threshold increased by 1% per year, it rose to $ 40,000 for those less than $ 500,000. Initially, the Senate opposed a change that largely benefits the best winners. Nevertheless, after the threats from the Parliament, the Senate accepted a level of $ 40,000.
However, unlike the original home version of SALT, the Senate bill protects a popular gap to walk around the lid. Duzine states allow the transition holders and partners to avoid the border at the state level, allowing a direct transition tax or a temporary solution called PTET. From automobile vendors and dentists to accounting and legal partners, it provides benefits, but not to the employees of these companies.
According to Kyle Pomerleau at the American Enterprise Institute, the first home version of the bill has eliminated the gap advantage for most white -collar companies, such as service industries and accountants, lawyers and doctors. Nevertheless, the Senate did not follow the change of parliament.
“The Senate version has no limitation on temporary solutions, Pomer Pomerleau said,“ These taxpayers effectively allow them to use an unlimited salt outage. ”
Small business stock advantage of qualified small business
Entrepreneurs and investors in small enterprises will cheer a change in qualified small business stocks or QSBs. The program, which was created during the Clinton administration and expanded within the scope of President Barack Obama, is designed to encourage investments and creation of small companies. In accordance with the existing laws, investors or owners of a qualified C Corp for more than five years obtain discounts on capital gain taxes when they sell. If its total assets are 50 million dollars or less, a qualified company is defined as “small enterprise .. When a business is sold, the owners or investors are exempt from capital gain taxes up to 10 million dollars or 10 times the original foundation of the investment.
The Senate bill increases the threshold to be described as “small business $ 75 million from $ 50 million. It also increases the exclusion from $ 10 million to $ 15 million and creates a new, layered system to allow tax reductions for those who want to sell five years ago.
Justin Miller, Joint and National Reserve Planning in Evercore, said that new rules will allow an investor to put $ 74.9 million in a small enterprise and will be exempted from capital gains up to $ 749 million if the original foundation is sold more than 10 times.
Miller encourages rich investors in small businesses with tremendous potential, ”Miller said.
Real Estate and Gift Tax
Like the version put forward by the house, the Senate bill makes the real estate tax permanent, which means that it will not have an expiration date in Washington. Exemption will rise to $ 15 million per property or $ 30 million for couples and exemption will be indexed for inflation.
Real Estate Tax for Ultra Rich is the most important of all the provisions of all major tax code provisions. Therefore, at least to have a little stability until the next election will make more calm real estate planning and gifts.
Producted Detrays
The Senate invoice includes a limit on the value of the detailed interruptions included in the original parliamentary bill. Only 10% of Americans – mostly rich – still state their taxes in detail, because the standard deduction is now $ 15,000 for single -files and $ 30,000 for common files. Under both the parliamentary and senate versions, the taxpayers in the upper parentheses are 2/37 from the value of each dollar deducted over the threshold. They will have to be in line. The net effect is that the best taxpayers will benefit only 35 cents for each dollar instead of 37 cents.
Charity
There are good news and bad news to give philanthropy depending on your income level. For low and medium -income winners, the Senate Law now contains a provision to encourage 90% of intangible Americans to give more philanthropy. The 2017 tax deductions have doubled the standard deduction and eliminated the incentive to create and demand a philanthropic deduction of the majority of taxpayers. The Senate invoice allows taxpayers to get a standard deduction and still demand a charitable deduction of $ 1,000 for single files and $ 2,000 for married common files.
Nevertheless, the Senate bill is definitely a philanthropist for wealthy donors who now make up the majority of philanthropy. By limiting product outages, it reduces the value of the benevolent deduction for high -income taxpayers and determines 0.5% of the gross income set for detailed charitable deduction.
Therefore, someone with a corrected gross income of $ 1 million cannot receive tax reduction in the first $ 5,000 donation.
