Friday, the New York Times revealed three pages from Donald Trump’s 1995 tax returns. The information was “shocking” to some people. It showed that Trump was able to not pay any taxes for 18 years because of losses he claimed in that one year.
It is true that Donald did nothing “illegal” but it does show a lot more about Donald Trump and taxes in general. In the tax theme, it shows that the system is slanted in favor of the very rich and not the little man.
While everyone is talking about the roughly $916 million loss he shows on his taxes, which is where the 18 years of no taxes comes from, everyone seems to miss one point. The one point that means he probably wouldn’t have paid any taxes that year anyway.
If you look closely you will discover that on line 11 he claimed losses totaling $15,818,562. Line 11 indicated money made or lost from rental real estate, royalties, partnerships, S corporations, trusts, etc.
This is the outrageous portion of the tax code that makes it possible for people like Trump from not paying taxes while you and I must pay our taxes. This part of the tax code allows people like Trump who claim to be real estate developers and managers to use depreciation deductions to off-set non real estate income.
However, average people cannot use such deductions to offset their own non real estate income. For example, when the housing bubble bust and people lost all of the equity in their homes, you could not deduct that loss of equity from your taxes. You were stuck with the loss.
On the other hand, real estate developers and managers can deduct depreciation of property from their non real estate taxes. That is a loophole that is only allowed for these types of people.
What makes matters worse is that nothing in Donald Trump’s tax “revisions” he is proposing closing that loophole. Meaning he and his family will continue to use this loophole in the future for their benefit.
Furthermore, it would appear that the losses shown for the rest of the $909 million are paper losses not actual cash losses from Donald Trump. This is an assumption since there isn’t enough information on those three pages released.
However, the losses appear to have come from the collapse of his casino/hotel/airline empire in the 1990s, which resulted in four bankruptcies. Since Trump did not have very much of his own cash invested in these companies it is a mystery how he could claim such a whopping loss.
His surrogates mostly Rudi and Chrissie went on the morning talk shows yesterday announcing that all of this proves that Donald Trump is a genius. They praised him for using the law to his advantage and proves that “only he can fix the problem with taxes.”
But, let us look at it from a different angle. Donald Trump says we should vote for him to be our next president because he is such a “wonderful and successful businessman.” I know a lot of successful businessmen. None of them lost almost 1 billion dollars in a single year.
That tells me that Donald Trump either over extended or was a total imbecile when it comes to business. Remember, these horrible losses came during boom years for the economy. In the 1990s the economy was actually booming, yet Donald Trump managed to collapse his own empire.
That does not sound like a wonderful or successful businessman to me. It sounds like someone who doesn’t give a shit as long as he gets his money out first. That is the true legacy of Donald Trump’s business practices.
His six bankruptcies put many small businesses out of business because they never got paid for their work. Hundreds and thousands of people became unemployed because Donald Trump was such a lousy businessman.
Trump has refused to release his income tax returns. He has refused to allow the list of his donors to become public. He has refused to say who his overseas connections and business partners are.
His company rented space to the government-owned bank of Iran. He has been shown to have violated the embargo against Cuba. His foundation has been fined for giving a political contribution. It is under investigation for “self dealing” meaning he used its money to purchase items for himself and to pay off suit settlements and fines. The foundation is also under investigation for accepting donations from third parties which it is not certified to do.
Donald Trump keeps telling us that things will become marvelous under him if elected and we should “believe him”. Well, I for one do not trust someone who can lose so much money during a boom year with the federal coffers.
If our entire economy was run like Donald Trump’s businesses the whole thing would collapse around our ears. We would see a second Great Depression and we would actually become that “third world” he claims we already are.
Sorry Rudi and Chrissie, these three pages of tax returns does not show that Donald Trump is a “genius”. They show that he is more of a bumbling imbecile at best, and a crook at worst.
If you really want to know who has the “little man” and not the very rich at heart, just look at the two different tax plans from the candidates. Donald Trump’s plan favors the rich and does not close these loopholes he takes advantage of year after year. Clinton’s plan actually means her family will have to pay more in taxes than they already do.
Stop drinking the kool-aide. Under a Donald Trump presidency we won’t have an economy. There will be no jobs. There will be no middle-class. We will have the very rich and everyone else.
The man has been proven to be a fraud. These three tax return pages shows he is a lousy businessman. We cannot let him anywhere near the Federal Coffers. Do not vote for the bumbling imbecile.