Rich Australians will get a $20m payout from President Donald Trump’s “wealth tax” in a move that could be a win for the Trump administration.
The money will be shared with wealthy Americans, who will be able to receive up to $1 million in tax breaks under the new plan.
It is the first time the Trump Administration has made such a public offer.
The $20M payout was announced on Friday by the Trump Organization.
It comes as a report said the administration was planning to raise the federal income tax rate for the wealthy from 39.6 per cent to 45 per cent, which would make it the first tax hike in US history.
The plan is expected to cost the government as much as $6.6 billion a year, which could be used to offset the $50 billion that is already spent on the federal deficit.
The new plan is part of a broader proposal by Mr Trump to cut taxes on high earners and eliminate a number of tax deductions.
The White House did not immediately respond to a request for comment.
“We are moving to the next level of tax relief, and this will be a major step forward for the American people,” said Treasury Secretary Steven Mnuchin in a statement.
Mr Trump’s plan would also eliminate the estate tax, which applies to the assets of individuals and couples over $5 million, from 2025. “
These new tax reductions will benefit many middle class families across the country, and we are encouraged by the growing momentum in support of this plan.”
Mr Trump’s plan would also eliminate the estate tax, which applies to the assets of individuals and couples over $5 million, from 2025.
A spokesperson for Mr Mnuchin said the president’s proposal was the “highest priority”.
Mr Mnuchins statement also came after President Trump tweeted a series of attacks on the wealthy and their families, and threatened to end the estate taxes on their estates if Congress does not approve a plan to raise taxes on the rich.
“I don’t care if it’s me or you, if you’re rich, you’re going to pay more in taxes.
I want to lower your taxes to the point where you can’t afford to pay them, and you’re not going to be able do that,” he said.
“You have to lower them because it’s not fair.”
Mr Mnuth said that the $20 billion would be split among the wealthiest Americans.
He did not provide details of how the money would be spent.
He also said the money was part of the President’s “tax relief package” that will be released in a few days.
The “tax cut” has been touted by the President as a win-win for the nation.
Mr Mnussin said that wealthy Americans were already benefiting from the new tax plan, which is designed to give them a break on their taxes that would help them invest in their businesses.
“It will allow them to invest in things that they would otherwise be unable to,” he told reporters.
“So if you buy a house, if your business is growing, if the economy is growing and you want to invest, you will get this tax break.”