The Trump Distraction – ‘Trump Wrote Off $100 Million in Losses in 2005, Leaked Forms Show’
So Donald Trump himself, sent out 2 pages of his 2005 tax returns – just 2 pages of, according to Trump himself…’hundreds’ that just happens to be the only year of records we have where he actually paid taxes…….
Why would he want that story released today?
‘Sen. Whitehouse: Comey may confirm FBI Russia investigation on Wednesday’
It’s all about context…..2005
‘A 1981 report by New Jersey regulators assessing his fitness for a casino license stated that he had paid more than $71,000 in federal income taxes on about $218,000 of taxable income earned from 1975 to 1977′.
‘But in the next two years, 1978 and 1979, Mr. Trump paid no federal income taxes. The New Jersey report explained that, by taking advantage of deductions available to real estate developers and claiming losses from partnerships, he was able to report a “negative income” — thus avoiding any tax liability for those two years, a time when he claimed to be worth hundreds of millions of dollars’.
‘Tax court records indicate that Mr. Trump also avoided paying federal income taxes in 1984’.
‘In 1991 and 1993, when his Atlantic City casinos were in deep financial trouble, casino commission reports show he claimed losses that would have allowed him to avoid paying income taxes in those years, too’.
‘Mr. Trump paid $38 million in federal income taxes on reported income of $150 million, an effective tax rate of 25 percent, according to forms disclosed on Rachel Maddow’s MSNBC show’.
‘The forms showed that Mr. Trump made $67 million in real estate royalties, $42 million in business income, $32 million in capital gains, $9 million in taxable interest and $998,599 in salary in 2005, for a total of nearly $153 million’.
‘They showed that the vast bulk of the federal income taxes he paid in 2005, $31 million, was paid under the alternative minimum tax, which Mr. Trump wants to abolish’.
‘That tax serves as a backstop to the ordinary income tax and is intended to prevent wealthy Americans from paying no income tax at all’.
‘Without it, Mr. Trump would have paid about $5 million in regular taxes, plus nearly $2 million in self-employment taxes, on $153 million in income in 2005’.
‘In October, The Times published three pages of Mr. Trump’s 1995 tax returns, which showed a $916 million deduction that could have allowed him to legally avoid paying federal income taxes for up to 18 years’.
‘The 1995 deduction was derived from the financial wreckage of some of the companies Mr. Trump drove into bankruptcy years ago’.
‘A tax code provision benefiting real estate developers, which took effect in 1993, permitted businesses like Mr. Trump’s to take tax deductions for losing other people’s money.
“If they can release some of the information, they can release all of the information,” Zac Petkanas, a senior adviser to the Democratic National Committee, said in a statement. “The only reason not to release his returns is to hide what’s in them, such as financial connections with Russian oligarchs and the Kremlin.”
‘The tax forms were sent to David Cay Johnston, a former New York Times reporter who covered tax policy for years and has written a book on Mr. Trump’.
‘He suggested that they might even have been sent by Mr. Trump himself. Because he did not solicit the forms, Mr. Johnston said it was not illegal to receive them’.