The comprehensive report on many of his alleged tax tricks comes at an inopportune time for US President Donald Trump, a few weeks before the US election. According to the New York Times, Trump is the first US president since Richard Nixon to refuse to disclose his tax returns.
The US newspaper claims to have tax documents dating back about two decades. In eleven of the 18 tax years, Trump would have paid no income tax at all. The reason is that Trump has declared more losses than gains. In 2016 and 2017 alone, he would have paid just 750 euros in taxes.
It’s nothing new that wealthy Americans’ taxes have fallen significantly in recent decades as they find increasingly better loopholes. However, most of them still pay large amounts of income tax. In 2017, the top 0.001 percent of U.S. taxpayers had to give up about 24 percent of their income, according to the report.
That’s why the Donald Trump case is quite suspicious. According to the New York Times, the latter paid more than $ 400 million less than people of comparable income over the past two decades. However, according to a “Forbes” reporter, he would have accumulated more than a billion euros in debt over the years, which will become due in the coming years.
In fact, Trump has paid taxes, about $ 95 million, for the past 18 years, but received a $ 72 million refund, according to the New York Times. So, according to the report, his annual tax expense during that period was only $ 1.4 million – comparably wealthy Americans paid more than 25 million.
He often reported massive losses, especially in his golf resorts. Trump is said to have lost more than $ 315 million on his golf courses since 2000. The “Trump International Hotel Washington DC” in the US capital is said to have lost $ 55 million to the US president in the past four years. Only the Trump Tower is said to generate $ 20 million in profit per year.
[Wenn Sie die wichtigsten Nachrichten aus Berlin, Deutschland und der Welt live auf Ihr Handy haben wollen, empfehlen wir Ihnen unsere runderneuerte App, die Sie hier für Apple- und Android-Geräte herunterladen können.]
Donald Trump is said to have made so much money with his brand that the income more than outweighs the losses. Trump responded in his own way and on Twitter to the New York Times report:
Concrete examples of true Trump tricks include the following:
Trump is reportedly withdrawing from the casino but continues to earn.
According to the New York Times, a trick could be particularly justified. When he paid back his taxes, he even stated that he had completely withdrawn from the Atlantic City casinos, which are suffering heavy losses. However, he is said to own five percent of the new casino company that was founded after he was said to have retired. So he continues to earn at the casinos. The tax authorities only resolved the matter today.
Trump declared golf course, hair styling, and makeup as operating expenses.
Other tricks seem particularly insidious. Trump wrote off much of his private activities as business expenses. For example, the cost of his golf resorts, where he spends his free time, or the private jet he uses to fly back and forth between his homes.
[Mit dem Newsletter „Twenty/Twenty“ begleiten unsere US-Experten Sie jeden Donnerstag auf dem Weg zur Präsidentschaftswahl. Hier geht es zur kostenlosen Anmeldung: tagesspiegel.de/twentytwenty.]
But that’s not all, according to the report: During the time he was on the TV show “The Apprentice,” he was already spending $ 70,000 on business expenses – on hair styling. Another $ 100,000 falls into the same category – for hair styling and makeup for his daughter Ivanka Trump.
Trump declared his property in Bedford as an investment property.
The fact that Trump combines leisure and business expenses becomes even more apparent in another case, according to the report: He declared his Seven Springs property in Bedford as an investment property rather than a personal home. It has saved him $ 2.2 million in property tax since 2014 – although it’s usually only allowed to write off up to $ 10,000 in property tax since 2017.
Trump stopped alleged advisory activities on several occasions.
According to the report, Trump is said to have sold about one-fifth of the revenue he generates from his companies to advisory activities. The highlight: Trump once paid about $ 740,000 to an undisclosed consulting firm – exactly this amount is stated in the annual reports of another consulting firm. One of the owners is: his daughter Ivanka Trump.