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President Trump's Tax Returns and the Tax Code

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There was a reason why Trump fought like an alley cat in courts to not release any tax returns in 2016 and now. He knew experts would find all the byzantine deductions or exceptions that reduced his tax liability. In some cases, they were valid, in other cases, tax evasion (as it is now in two cases in legal proceedings in New York), or just a legal loophole to be exploited, as many do.

One of his evasive tactics was to hire his daughter, Ivanka, as a consultant to the Trump business, and then use the same amount to deduct from taxes owed. Using expenses of $70K for haircuts in one year is also suspect for a man who refrains from haircuts. Using Ivanka's haircut costs that were even more as a deduction is truly suspect.

But owing over $400 million dollars makes a POTUS compromised to whomever he is indebted to. The question is: who are they? Are they to Putin or his autocrats? Other foreign entities that maybe are not allies?

Trump has actually paid more income tax to the Philippines, $156K, for his new Trump Tower in Manila. He also paid $145K in taxes to India for his new project there. In the USA, he paid little to none leading up to 2016. Now some Trumpers say he paid $1 million in taxes, but it is still millions less than Biden has paid in his most recent return.

What this exposes is the U.S. Tax Code with its many loopholes that many Americans can exploit if they know the tax law. Trumpers will state that POTUS is a smart man in avoiding his fair share of taxes, well, only if there is no illegality. And obvious there is since Trump is fighting in court now for tax evasion. Even in the past cases, Trump has lost and has paid a heavy fine for it. Trumpers will also cite that "everyone tries to deduct and exempt when it comes to taxes" , while true, when a millionaire pays just $750 in taxes and a person earning $50k pays way more, something is wrong with the morality and character of the millionaire, let alone trying cheat the law, which Trump claims he his the "law and order" president! The funny thing is, Trump , thinks he is above the law and is just another con man gaming the system and the office of the White House.

Worse, is that Trump's personal desire to expand his Trump brand name on real estate projects while in office make foreign policy an issue. With Turkey, he earned $13 million from building a Trump Tower in Istanbul. He earned a similar amount for the newest tower in the Philippines that is 50% vacant still. In both cases, Trump has refrained from being critical of Erdogan of Turkey and of Duterte of the Philippines. Why rock the boat in a country that you do business in? With Turkey, he withdrew US troops from the Syrian-Turk border to allow Turks forces into Syria. This still comprises the US troops there because Turkey and Russia have become allied in Syria. Maybe Erdogan demanded this in exchange for a Trump Tower. You see, Trump was initially against allowing Turkey into Syria and stopped their military plans for over a year and then suddenly, he ordered them to withdraw. Why? Trump has complimented Duterte many times for how he has governed the Philippines despite this country choosing China over the USA for trade etc. There was a reason for this soft touch, a new Trump tower in Manila. The same applies to Putin. Trump's accolades on him is for one reason-Trump still wants that Moscow Tower that Putin did stop before 2016. The Russian sanctions Trump has done are fine but they are little too late and Putin can simply do business with Europe, which is fine. In fact, Europe and Putin are in a huge deal for natural gas, so Putin really has leverage over Trump because of want Trump desires in Moscow. What would Trump do or compromise US security to get his Moscow Tower?

That is the question. Trump is in court in New York for tax evasion right now. His attorneys are fighting but have lost each time in the past. Trump might owe the US government millions of past due taxes, which would be ironic since he is POTUS! A criminal in the WH.

Oh my.

Comments

CHRIS57 from Northern Germany on September 29, 2020:

Is there any information on the balance sheets of his organizations?

Owing 400M doesn´t mean much if it is backed by 3000M assets. That would be some 15% dept to equity ratio.

Matters only get alarming if assets are highly overrated or owners equity is within 300% of debt. Because in case of bankruptcy assets usually collapse to 30% of balance sheet values.

So - what is realistic value of his assets? Me think this question is more important than ridiculously high hairdresser bills.

From my personal experience as a businessman (even if from another country) tax authorities only dig into your pocket, if there is money in it. You can evade taxes for a year or two, but for a decade? Looks very much like his organisation lives on borrowed money, money borrowed from silly banks like Deutsche Bank (.. and i am German..).

I think, Trump has put much effort into hiding the true nature of his fragile little empire. Part of that effort being to hide his tax files.

Actually if someone would look at the tax declarations of 18 years, he/she could do reverse engineering and reconstruct all balance sheets. Year to year changes reveal a lot.

Leslie McCowen from Cape Cod, USA on September 29, 2020:

Ann Coulter called out Trump: "I've paid nearly 50% of my income in taxes, year after year, and any system that allows billionaires to pay ZERO is unspeakable corrupt."

Leslie McCowen from Cape Cod, USA on September 29, 2020:

Yes, isnt to it ironic......people who are too poor to even qualify for income taxes are bums, but a guy who lives a luxury lifestyle and doesn’t pay taxes is “smart”!

It shows how we have been steered to see the world in a certain way. Money is the qualifying factor in everything here.

And this needs to change.

I can remember when it was embarrassing to have a lot of money! “Oh, you bougeswaze”(sp?)

Do people really think it’s smart not to pay taxes? Like, “Greed is Good” from the movie Wallstreet?

I don’t think anyone should be put down for their monetary status.....BUT, since it is the overlying factor in everything, we need to spread it around more.

Or......those who wish not to pay can go live in a tax free country. They do exist.

John R Wilsdon from Superior, Arizona on September 29, 2020:

Is it $750 in federal income tax? If so, how much does the average $50,000 earner pay in income tax.