Millionaire Eric Schoenberg is revealing his latest tax returns to explain how the rich keep getting richer under the GOP tax plan.
“In 2016, my wife and I had an adjusted gross income of just over $1,050,000 and paid $180,000 in income tax,” he explained. “In 2016, if the tax rules had been in place I would have saved roughly $50,000 on my tax bill, about a third of my total taxes would have gone down.”
According to Schoenberg, the rules of the GOP’s new tax plan are written in a way that the majority of American taxpayers will save money, but not for long. Tax saving for individuals get eliminated in 2025, whereas savings for corporations are permanent.
“This is what happens when you litter the tax code with significant loopholes, giving benefits to specific groups of individuals,” he explains. “Most of the loopholes that litter the tax code benefit rich people more than middle class people. And the single greatest loophole that benefits the rich is lower rates on investment income than on labor income. This is a problem that is exacerbated in the new tax code which gives wealthy business owners the opportunity to deduct some of their income from businesses.”
Schoenberg says that under the tax system, he currently pays less than a percentage of his income in taxes than middle class Americans — and that he doesn’t believe that’s fair.