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WASHINGTON (AP): A New York Times report that President Donald Trump paid just $ 750 (3,124 yuan) in federal income taxes the year he entered the White House and, thanks to colossal losses, no income taxes in 11 of 18 years what Times reviewed, it served to raise questions about Trump’s image of himself as a smart and successful businessman.
That Sunday’s report came just weeks before Trump’s re-election bid served to heighten attention on businessman Trump, an identity he has cultivated for decades and that helped him take the presidency four years ago in his first run. to political office.
the TimesThe report ‘deepens the uncertainty surrounding a tumultuous presidential campaign in the context of a viral pandemic, race riots in American cities and a fierce battle for the Supreme Court seat vacated by the death of Justice Ruth Bader Ginsburg.
Since entering the White House, Trump has broken with the tradition established by his predecessors not only by refusing to publish his tax returns, but by waging a legal battle to keep them hidden.
the Times The report suggests why this could have been. He reported that many of Trump’s top companies are losing money, even as those losses have helped him reduce his federal tax bill to next to nothing.
Eugene Steuerle, a tax expert at the Urban Institute, said he wasn’t surprised that Trump turned out to have paid almost no federal income taxes. Most commercial real estate developers deduct large interest payments on their debts from taxable income, thereby reducing your tax bills.
They also generally avoid capital gains taxes by investing the proceeds from the sale of one building in the purchase of another.
“Most tax experts expected that you would find few tax payments from President Trump,” said Steuerle, who served as a Treasury Department official during Ronald Reagan’s presidency.
the Times noted that Alan Garten, a lawyer for the Trump Organization, said about the Times reported that “most, if not all, of the facts appear to be inaccurate” and requested the documents on which the complaint was based, that the Times declined to provide to protect its sources.
the Times He said Garten then directly disputed only the amount of taxes Trump had paid.
Here are some key takeaways from the Times‘reports:
1) Trump paid just $ 750 in taxes in both 2016 and 2017
The newspaper said Trump initially paid $ 95 million (RM396,000) in taxes during the 18 years he studied. But he managed to recoup most of that money by claiming – and receiving – an impressive federal tax refund of $ 72.9 million (RM303.6 million).
According to the TimesTrump also pocketed US $ 21.2 million (RM88.3 million) in state and local refunds, which are generally based on federal filings.
Trump’s huge refund became the subject of a long-standing Internal Revenue Service audit of his finances. The audit was widely known. Trump has claimed that was the reason why he cannot publish his statements. But Times report is the first to identify the issue that was primarily in dispute.
As a result of the refund, Trump paid an average of US $ 1.4 thousand (RM5.8 thousand) in federal taxes from 2000 to 2017, the Times reported.
In contrast, the average American taxpayer in the top 0.001% of wage earners paid around US $ 25 million (RM104 thousand) annually during the same time period.
2) Trump has financed an extravagant lifestyle with the use of business spending
From their homes, their plane, and $ 70,000 (RM 291,550) in hairdressing during their TV show. The newbie – Trump has capitalized on the costs incurred by his businesses to finance a luxurious lifestyle.
the Times noted that Trump’s homes, planes, and golf courses are part of the Trump family business and, as such, Trump also classified them as business expenses.
Because businesses can write off business expenses as deductions, all of those expenses have helped reduce Trump’s tax liability.
3) Many of your best known businesses are money losers.
The president has frequently singled out his far-flung hotels, golf courses and resorts as evidence of his success as a developer and entrepreneur. However, these properties have been draining money.
the Times reported that Trump has claimed US $ 315,000 (RM1.3 billion) in losses since 2000 at his golf courses, including Trump National Doral near Miami, which Trump has described as a crown jewel in his business empire.
Likewise, its Trump International Hotel in Washington has lost US $ 55 million (RM229 thousand), the Times reported.
4) Foreign Visitors Have Helped Support Trump’s Properties
Since Trump began his presidential career, lobbyists, foreign governments and politicians have lavished significant sums of money on his properties, a spending spree that raised questions about his ownership and legality.
the Times The report illustrates just how much that expense has been: Since 2015, his Mar-a-Lago resort in Florida has earned an additional $ 5 million (RM21,000) annually from increased membership. The Billy Graham Evangelistic Association spent at least $ 397,602 in 2017 on the Trump Hotel in Washington.
Projects abroad have produced millions more for Trump: US $ 3,000 (RM13,000) from the Philippines, US $ 2.3 thousand (RM9.6 thousand) from India and US $ 1 thousand (RM4.2 thousand) from Turkey.
5) Trump will face financial pressure as debts come due
Trump seems certain that he will face severe financial pressure from the huge amount of debt he has absorbed.
the Times He said the president appears to be responsible for US $ 421 million (RM1.8 billion) in loans, most of which are due within four years. On top of that, a US $ 100,000 (RM417,000) mortgage on Trump Tower in New York will expire in 2022. – AP
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