You’ve probably heard Hillary Clinton argue that Donald Trump hasn’t paid any taxes. That’s her theory as to why he hasn’t released his tax returns, at least.
Another talking point of her ignores how the tax code works anyway. For instance, we learned from a leaked tax return that Donald Trump suffered a net loss of just over $900 million in 1995, which he can carry over to writeoff taxes against future net income. This isn’t a tax loophole like liberals think, it’s common sense. If you’re an investor and you lose $5 million in year one, then earn $1 million the next five years, how much money did you make?
Zero dollars, of course, and thus you should pay no taxes. Without being able to carry losses forward, that hypothetical investor would be taxed as if he earned $5 million over five years, when in reality he earned zero over six.
Every company, and yes, EVERY company, carries over losses to reduce their future tax burden. Warren Buffet’s Berkshire Hathaway does it (despite his claims he doesn’t carry over loses on his personal taxes), and so does Hillary Clinton. In 2015, Hillary wroteoff nearly $700k in capitol losses against her income.
If she’s going to complain about taxes, she needs to look in a mirror. As YesImRight reported:
Well this is a little awkward. With the leaked 1995 Trump tax returns ‘scandal’ focused on the billionaire’s yuuge “net operating loss” and how it might have ‘legally’ enabled him to pay no taxes for years, we now discover none other than Hillary Rodham Clinton utilized a $700,000 “loss” to avoid paying some taxes in 2015.
However, a look back at Hillary Clinton’s tax returns from 2015, proudly displayed by the campaign proving she has nothing to hide – shows something awkward on page 17…
So, Hillary has done exactly what she accuses Trump of doing. Even the New York Times, which released Trump’s taxes, showing his massive loss, utilizes their own company’s losses for tax purposes.
In 2014 the company got a tax refund of $3.6 million despite having a $29.9 million pretax profit, an effective negative tax rate for 2014, which it explained was favorably affected by approximately $21.1 million for the reversal of reserves for uncertain tax positions due to the lapse of applicable statutes of limitations.
If liberals didn’t have double standards, they wouldn’t have any standards at all…