Top five tax changes for the rich
A look at the US Capitol in Washington, DC, on June 30, 2025.
Jim Watson | AFP | Getty pictures
According to tax experts, the rich will probably see a large number of new tax breaks in “Big Beautiful Bill” by President Donald Trump and permanent extensions of many tax cuts for 2017.
Taxpayers who earn $ 1 million or more will be increased according to Tax Policy Center, $ 1 million or more in the Senate version of Trump's legislation after taxes of around 3%. This is about 2.5%compared to the nationwide average. According to the tax policy center, millionaire earners in the dollar income in 2026 are increased by an average of $ 75,000.
Practically all core determinations of the 2017 tax reduction are expected to be expanded in the final invoice, which was adopted in the house on Thursday and is now going to Trump's desk, with some provisions being permanent. There are also several new tax breaks or services in the invoice that further underline the tax invoices for those – especially for investors in small companies.
Here are the five most important changes in the invoice that have a lot of effects and rich.
SALT
Surprisingly, the Senate's draft law largely follows the version of the state and local tax increases in the house or the salt cap increase. The existing upper limit for salt deductions of 10,000 US dollars will increase to $ 40,000 for those who earn less than $ 500,000, with the income threshold increases by 1% per year. The Senate was initially against a change that largely benefits Blue-State-Top earner. But after the threats of the house, the Senate agreed to the level of $ 40,000.
In contrast to the original house version of Salt, the Senate Act preserves a popular gap to avoid the cap. Dozens of states allow a problem bypass, which is referred to as a pass-through company tax or Ptet and encourages pass-through owners and partners to avoid the upper limit at the state level. It will go to all, from car dealers and dentists to accounting and right-wing partners, not from employees of these companies.
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The first house version of the legislation removed the gap for the service industry and most employees such as accountants, lawyers and doctors, according to Kyle Pomerleau at the American Enterprise Institute. But the Senate did not pursue the change in the house.
“The Senate version has no restriction for the problem bypass,” said Pomerleau, “this taxpayer effectively allowed this taxpayer to use an unlimited salt deduction.”
Qualified performance advantage for small businesses
Entrepreneurs and investors in small companies will cheer on qualified small business shares or QSBs. The program was created during the Clinton administration and expanded under President Barack Obama and is intended to promote investments and the creation of small companies. According to applicable law, investors or owners of a qualified C -Korp have been received for more than five years when selling capital gains taxes. A qualified company is defined as a “small business” if its total assets are $ 50 million or less. If a company is sold, owners or investors of capital gains taxes are up to 10 million US dollars or the original basis of the investment, depending on the value.
The Senate's draft law increases the threshold in order to qualify as a “small company” from $ 50 million to $ 75 million. It also increases the exclusion of USD $ 10 million to $ 15 million and creates a new, graded system to enable tax benefits for those who want to sell five years ago.
Justin Miller, partner and National Director of Wealth Planning at Evercore said that the new rules would enable an investor to put 74.9 million dollars into a small company and to have sold up to $ 749 million from capital gains if he sold more than ten times the original basis.
“It encourages wealthy investors in qualified small companies with enormous potential,” said Miller.
Estate and gift tax
As in the version that the house presented, the Senate's draft law makes the estate tax permanently, which in Washington means that it has no installed expiry date. The exemption would increase to USD $ 15 million or $ 30 million for couples, and the liberation is indexed for inflation.
For the ultra-rich, estate tax is the most important of all important tax regulations. A certain stability at least until the next election ensures quieter estate planning and gifts.
Elemented deductions
The Senate's draft law contains a limit to the value of detailed deductions, which were also included in the original house bill. Only about 10% of the Americans – mainly the rich – still put on their taxes, since the standard deduction is now 15,000 US dollars for individual filers and $ 30,000 for common filers. Both in the versions of the house and in the Senate, taxpayers in the upper holder must deduct 2/37 from the value of each dollar, which is deducted over the threshold. The net effect is that top taxpayers only receive a deduction of 35 cents for every dollar and not $ 37 cents.
philanthropy
Depending on your income level, there is good and bad news for donating non -profit donations. For earners with lower and medium -sized incomes, the Senate's draft law contains a provision to promote more non -profit donations from the 90% of the Americans that no longer occur. The 2017 tax cuts doubled the standard deduction and removed the incentive for the vast majority of taxpayers to set up and demand the non -profit deduction. The Senate's legislative template enables taxpayers to make the standard deduction and still request a non -profit deduction of up to $ 1,000 dollars for individual filers and 2,000 US dollars for married filters.
However, the law of the Senate is extremely indescribable for wealthy donors who now make up the majority of donations for non -profit donations. It reduces the value of the non -profit deduction for taxpayers with a high income by limiting detailed deductions and determining a new floor of 0.5% of the adjusted gross income for the detailed charity deduction.
Therefore, someone with an adjusted gross income of 1 million US dollar would not receive any tax benefits for the first 5,000 US dollars.
