Home Politics Trump’s Tax Evasion Is an Indictment of American Plutocracy

Trump’s Tax Evasion Is an Indictment of American Plutocracy

Donald Trump speaks into a microphone

In 2016, Donald Trump paid Stephanie Clifford, the actress who starred in adult films under the name Stormy Daniels, $ 130,000 to keep silent about a sexual encounter. For the year, Trump paid a total of $ 750 in federal income tax. The following year, his first as president, his income tax was again $ 750. Those two years were unusual for Trump as he has typically not paid any income tax at all for the past decade. The New York Times, which in a Blockbuster report Based on documents on Trump’s taxes dating back two decades before 2018, it was found that Trump has not paid taxes in 11 out of 18 years. That is a remarkable feat for a suspected billionaire.

The Times The exposé shows that Trump pulled off the enviable trick of living like a king and paying taxes like a poor man. He did this through a complex shell game where taxes are collected on the profitable part of his financial empire (mostly his work as a reality show star) The Apprentice and some older real estate holdings) make lavish fortunes that will not be taxed as other businesses, particularly golf courses, regularly make large losses. But beyond this juggling game, Trump has also avoided taxes by taking measures that circumvent the boundaries of the law and require investigation, notably the practice of paying counseling fees to the three adult children (Ivanka Trump, Donald Trump Jr., and Eric Trump) Pay also help manage the Trump organization. This proprietary trading comes with many questionable write-downs on personal expenses, including $ 70,000 for haircuts and more than $ 95,000 for a barber used by Ivanka Trump.

While this chicane keeps Trump afloat, this one is Times notes that its business empire is suffering from a heavy burden of debt that could overturn it. “In addition, the tax records show that, looking back at his collapse in the early 1990s, Mr. Trump did again what he regretted: he personally guaranteed hundreds of millions of dollars in loans, a decision that prompted his lenders to agree.” Violence threatening him into personal bankruptcy.

“This time around, he is personally responsible for loans and other debts totaling $ 421 million, the majority of which is due within four years. Should he win re-election, his lenders could be put in an unprecedented position to consider whether to expel a seated president. ”

That $ 421 million only includes short-term debt that will mature over the next several years. Comment on Times Story, Dan Alexander, a reporter for Forbes, calculatedBased on the available public records, Trump has a total debt of $ 1.1 billion.

Trump’s sitting on a mountain of debt begs the troubling question: Who does the president belong to? As Sarah Longwell, editor of Conservative magazine The bulwark, argued“People focus on how little Trump paid in taxes, but for me, that’s the bigger story. He was heavily in debt and was looking for a way to revive his brand. So he ran for president. And since then he’s been a walking conflict of interest. “




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