Liberals are swarming over a New York Times report that they think is a bombshell proving that Donald Trump doesn’t pay any taxes. They evidence? That in 1996, Donald Trump suffered a net loss on his investments of $995 million.
Why would that mean he possibly doesn’t pay taxes? Because you can carry over losses into the next year. So for example, had Trump earned $1 billion the next year, he’s only be taxed on five million of it, since he’d be able to writeoff the 995 million loss.
Such news was shocking to everyone who’d never taken an accounting class – or known that the tax laws are structured this way thanks to changes made by Bill Clinton. Regardless, Trump is hardly the only one to take advantage of this non-loophole. I don’t even understand how this is controversial. If you pay taxes on income, why wouldn’t it make sense to get the equivalent of a negative tax on losses? I don’t think there’s a CPA on this planet whose had a client that doesn’t try to minimize their tax burden as much as legally possible.
Regardless, you know who else used these tax laws to lower their tax burden? Hillary Clinton, of course. As 100 Percent Fed Up reported:
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.
The Clinton Campaign was quick to jump on the leaked Trump tax filing with Robby Mook tweeting:
Apparently, Hillary forgot she used the same law to take a loss on her taxes. Turn to page 17 of her tax returns, and you’ll see she wroteoff nearly $700k in capital losses.
Ironically, if you took a peak at the New York Times’ own financial statements (which isn’t hard to do, since they’re a public company), they too used the same kind of writeoff they criticized Trump over. In 2014 the NYT 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 in prior losses.
So is Trump paying taxes today? Considering that he’s made much more than $995 million since 1996, the obvious answer is yes. If there’s a reason he hasn’t released his tax returns yet, it’s not because he’s hiding that he doesn’t pay taxes.