Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter 1 Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
OpEdNews Op Eds

The Real Scandal of Trump Paying No Taxes

By   Follow Me on Twitter     Message Robert B. Reich       (Page 1 of 1 pages)     Permalink    (# of views)   2 comments

Related Topic(s): ; ; ; , Add Tags
Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H3 10/3/16

Author 47089
Become a Fan
  (127 fans)

Reprinted from Robert Reich Blog


(Image by Gage Skidmore)   Details   DMCA
- Advertisement -

According to the New York Times, Donald Trump declared a $916 million loss on his 1995 tax returns -- which could have allowed him to legally avoid paying any federal income taxes for 18 years.

The loss stemmed from Trump's investments in the early 1990s.

Ordinary investors in Trump's business empire saw the value of their shares plunge to 17 cents from $35.50, bondholders got pennies on the dollar, and scores of contractors went unpaid.

- Advertisement -

But Trump got a bonanza because the tax code allows "net operating losses" to cancel out taxable income in future years. And the bankruptcy code allows wealthy people to stiff the people they owe by reorganizing their debts under Chapter 11.

Trump didn't do anything illegal. Real estate losses are notoriously easy to create. Trump bought buildings with borrowed money. He could then deduct interest paid on that debt. On top of that, he could take depreciation deductions, even when his real estate was appreciating in value.

Presto! Trump claimed almost a billion dollars of losses that would cancel his gigantic income gains for years to come.

- Advertisement -

Bankruptcy is also easy to utilize, if you're wealthy enough to find a good bankruptcy lawyer who can use the bankruptcy code repeatedly to shelter your fortune and avoid paying your debts. Trump has used bankruptcy to stiff his creditors at least four times.

The real scandal here is that Trump and other hugely wealthy people can get away with this, and do so all the time. It's just another way the system has been rigged -- by rich people who buy off politicians to alter tax, bankruptcy, and other laws and regulations to their advantage, just like Donald Trump has done.

"As a businessman and a very substantial donor to very important people, when you give, they do whatever the hell you want them to do," Trump told The Wall Street Journal in July 2015. "As a businessman, I need that."

Trump isn't and was never a smart businessman. He was and is smart at gaming the system. There's a difference.

 

- Advertisement -

View Ratings | Rate It

opednews.com

Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

Robert B. Reich Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Related Topic(s): ; ; ; , Add Tags
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Republican's Big Lies About Jobs (And Why Obama Must Repudiate Them)

Paul Ryan Still Doesn't Get It

What Mitt Romney Really Represents

What to Do About Disloyal Corporations

The Gas Wars

The Minimum Wage, Guns, Healthcare, and the Meaning of a Decent Society