- Billionaire casino magnate Sheldon Adelson could see his tax bill cut by $40 million
- Might see his tax bill reduced if the American Health Care Act gets passed
Sheldon Adelson, a billionaire casino magnate and megadonor to the Republican Party, could see his tax bill reduced by $40 million.
That’s according to a report by liberal think-tank Center for American Progress, which cites the passing of the American Health Care Act (AHCA) as the possible reason for the huge reduction in Sheldon Adelson’s tax bill.
An analysis of the Center for American Progress’ report by Business Insider has put the total amount of tax Adelson could avoid paying at around $43.5 million. This is assuming the AHCA does actually get passed and that its tax effect is retroactive to the year 2017.
The Net Investment Income Tax
What could result in Adelson avoiding having to pay so much tax is the potential repeal of Obamacare’s Net Investment Income Tax (NIIT). This tax applies only to those earning more than $200,000 a year or couples collectively earning over $250,000.
It’s a tax of 3.5% on capital gains and dividends. Adelson and his family own a total of 392,735,403 shares of his company, Las Vegas Sands, which pays out dividends of $2.92. This would result in Adelson receiving $1.14 billion in dividend payments in 2017; if he were to be subject to the NIIT, he would have to pay around $43.5 million. Should the NIIT be repealed, Adelson’s tax bill would be significantly reduced.
Even more savings?
What’s more is that Adelson could save even more on his tax bill. The figure produced by the Center for American Progress doesn’t take into consideration income from any other of Adelson’s investment vehicles. Nor does it consider capital gains Adelson might acquire from selling his shares.
Sheldon Adelson is estimated to have a net fortune of around $32 billion. The investor, business magnate and philanthropist is the founder, chairman and CEO of Las Vegas Sands Corporation, America’s largest casino company. He was the largest single donor during the 2016 presidential campaign, donating $25 million to Donald Trump’s campaign. Adelson is against the legalization of online casinos in the US.
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