In an effort to discredit and smear President Trump, the latest charade paraded by the New York Times includes tax records somehow obtained by the leftist publication. However, the information the records provide does nothing to fuel the fabricated Russian collusion narrative, and actually shows President Trump has sacrificed massive wealth to take office.
Many people find it interesting that such a story would be run directly after evidence of the Biden’s illegal behavior was released, and consider the real question is who leaked this information to the Times.
Claiming to have “obtained Donald Trump’s tax information extending over more than two decades,” the NYT admits its findings amount to problems most businesses deal with: “struggling properties, vast write-offs, [and] an audit battle.”
The article also admits “the filings will leave many questions unanswered, many questioners unfulfilled,” and also kills off the idea that President Trump’s finances were somehow linked to Russia. The piece reads: “Nor do [the tax returns] reveal any previously unreported connections to Russia.”
The New York Times has just published a long hyped and incredibly long winded account of Trump’s finances.
It’s going to seriously upset the left. There appears to be no wrongdoing, no Russia ties, and nothing of substance beyond what most corporations do.
Womp womp! pic.twitter.com/4ilyyqhCII
— Raheem Kassam (@RaheemKassam) September 27, 2020
Trump called the central claim the NYT makes – that he only paid $750.00 in federal income taxes – “fake news” in a press conference on Sunday evening.
A lawyer for the President said: “Over the past decade, President Trump has paid tens of millions of dollars in personal taxes to the federal government, including paying millions in personal taxes since announcing his candidacy in 2015.”
The New York Times failed to include the details of the returns in its reporting, admitting in its own article: “The Times declined to provide the records, in order to protect its sources.”
The New York Times‘ exposé on Donald Trump’s tax returns suggests that the president has suffered financial losses for many years, resulting in many years when he paid little or no federal income tax.
The Times speculates that the presidency itself is Trump’s only hope to recoup his losses, either through burnishing his brand or using his political power, ignoring conflicts of interest.
But the Times has also succeeded, albeit inadvertently, in debunking several common anti-Trump conspiracy theories.
Russia. The Times found no evidence of any links to Russia that were previously unreported. The tax returns, it says, do not “reveal any previously unreported connections to Russia.” All they show is that the 201 Miss Universe pageant in Moscow was “was the most profitable Miss Universe during Mr. Trump’s time as co-owner, and that it generated a personal payday of $2.3 million.” That’s all there is to the vast Russian business interests Democrats hinted (and hoped) the returns would show.
Michael Cohen. Prosecutors in New York have subpoenaed the tax returns for a criminal investigation — most likely, having to do with payments via Trump’s former lawyer, Michael Cohen (now a convicted felon), to alleged lovers (including Stormy Daniels). The Times noted: “The materials obtained by The Times did not include any itemized payments to Mr. Cohen.” It added: “The amount, however, could have been improperly included in legal fees written off as a business expense.” That’s it.
The Audit. Democrats and journalists have mocked Trump’s long-standing claim that he could not release his tax returns because he faced an Internal Revenue Service audit. The Times confirmed the audit: “Also hanging over him is a decade-long audit battle with the Internal Revenue Service over the legitimacy of a $72.9 million tax refund that he claimed, and received, after declaring huge losses. An adverse ruling could cost him more than $100 million.” It is real, just as Trump has claimed.
There are likely other shoes to drop — and it is no accident that the Times has produced this exposé, featuring the Moby Dick of Trump’s opponents, roughly 48 hours before the first presidential debate. Trump’s tax returns, if real, and if summarized correctly by the Times, do not paint a flattering financial picture. Yet they also debunk many cherished left-wing fantasies — and they may confirm what Trump supporters have said since 2016: that he has sacrificed his personal fortune to serve.
Conservative Treehouse explained the spin the Times tried:
Once again the New York Times attempts to make an issue out of President Trump’s real estate holdings working as a tax shelter and reducing income taxes.
In the article the Times completely obfuscates the way income taxes are strategically offset by depreciation, mortgage interest and the entire reason why real estate ownership is viewed as a business.
John Carney writing for Breitbart gets it:
[…] So imagine our guy took out an $8 million mortgage at five percent, paying $2 million cash. Now he’s got to pay $400,000 in mortgage payments. He wants to make at least that much so he charges tenants an aggregate of $425,000, which after upkeep comes out to $410,000 of net income. (Remember, if the bank didn’t think he could make more in rent than the mortgage payment, it probably wouldn’t have lent him the money.) The interest payment on the loan–let’s call it $390,000–is deductible from his income, leaving him with $20,000 in net income. He gets to keep that and pay no taxes on it, however, because he still gets to apply the $370,000 depreciation charge. He tells the IRS he lost $350,000.
Under our tax code, ordinary business expenses can be deducted in the year they are incurred. But when a business pays for a long-lasting item expected to produce income–like machinery, vehicles, or an apartment building–it is considered a capital investment. Instead of getting to write-off the cost all at once, the business is required to write it off over the course of decades. After the 1986 tax code, this was set at 27.5 years for residential real estate. (more)
Anyone who has ever operated a business knows that offsetting income is one of the primary reasons to be self-employed. Additionally, the Times completely skips over the tens-of-millions in payroll taxes paid by the Trump organization and tens-of-millions in property and sales taxes paid by all of the various Trump properties.
In the commercial real estate market it is common sense to offset income tax liabilities with a host of valid annual expenses, long-term capital depreciation and mortgage interest payments. With over 500 individual business entities within the Trump organization the ability to offset income in one asset with expenses in another is simply good accounting.
Additionally, President Trump donates his $400,000 government salary back to the U.S. government. So to accuse President Trump of only paying $750 in income taxes totally ignores all of the other donations and tax payments he makes.
In practical terms no President before Trump has ever had his actual business portfolio so deeply connected to the success of the American economy. It doesn’t cost the American taxpayer a dime to have President Trump in office…. Now let’s figure out how DC politicians making $200k/yr are able to become multi-millionaires while holding office.