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If there's a silver lining, it's that Trump's tax manipulations reveal where the weak spots are in the current system. (Photo: Khalil Bendib / OtherWords.org)
You Paid More Taxes Than Donald Trump
There are two tax systems in America: one for you and me, and one for the wealthiest 0.1 percent.
Oct 01, 2020
My daughter, a librarian in Tucson, paid more taxes in 2017 than Donald Trump. So did my neighbor Rita, a teacher, and her son Tony, who stocks grocery shelves in Leland, Michigan
I also pay more in taxes than the president of the United States. And, probably, so do you.
We now understand why Trump was the first presidential candidate since the 1970s not to divulge his tax returns.
In 2016 and 2017, the billionaire paid just $750 each year in taxes to the U.S. Treasury. In 10 out of 15 years between 2001 and 2017, Trump paid zero taxes.
The average middle class household paid approximately three times as much in federal taxes as Trump did in 2017, an average of $2,200 based on an income of roughly $60,000. Any individual earning over $25,000 most likely paid more than the president.
It's not that Trump wasn't paying taxes at all. In 2017, Trump paid $156,824 in taxes in the Philippines and $145,500 in India. He just wasn't paying them to support veterans, build roads, or protect seniors in this country.
The other secret Trump doesn't want you to know is that his image as a wealthy successful business mogul is a mirage.
Over the decades, Trump personally lobbied Forbes Magazine to report that he was wealthier than he really is. Two decades of tax returns, however, reveal he is a man in deep financial doo-doo. He may even owe more than he owns.
Trump's real estate and resort businesses are mostly money losers, contributing to hundreds of millions of tax-deductible business losses each year.
On top of these losses, Trump deducts tens of millions in lavish personal living expenses -- such as $70,000 in hair styling, consulting fees to his children, and mansion retreats -- to reduce his tax obligations.
Only someone with Trump's army of tax attorneys and wealth managers could pull off these loopholes. Trump's assets are spread over 500 different corporate shells, enabling limitless shifting and gaming of income and taxes.
Trump takes advantage of the fact that there are two tax systems in America: one set of rules for the super-rich and another set of rules for everyone else.
Most of us get our incomes from paychecks and government agencies that know exactly how much we are paid and often withhold our taxes before we even see the money.
Wealthy people with incomes over $2 million and assets over $20 million get most of their income from investments, ownership of assets, and businesses. There are endless games they can play to manipulate their income. And they can afford to hire accountants and tax lawyers to maneuver their taxes downward.
If you lose money, you grow poorer. But when the super-rich create paper losses to offset their taxes, they're still rich. And like Trump, they aren't sacrificing anything in terms of their cushy standard of living.
These tax shenanigans are all the more unseemly in the face of a pandemic that's destroyed the wealth, health, and livelihoods of millions. Tens of millions of families have lost jobs, savings, home equity, and any other economic security they may have had.
They will not be "carrying over" these losses into future years and virtually eliminating their taxes for a decade, as Trump did.
Instead, they'll pay income taxes on unemployment insurance, stimulus checks, and any paycheck they've been able to eke out. There will be no deductions for haircuts or consulting contracts for their children.
Trump's taxes reveal the real truth. He's more about the art of the deduction than the art of the deal.
If there's a silver lining, it's that Trump's tax manipulations reveal where the weak spots are in the current system. Congress should restore fairness and integrity to a tax system that has been pillaged by the super-rich.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
This column was distributed by OtherWords.
Chuck Collins
Chuck Collins is co-founder of CARP and author of Burned by Billionaires: How Concentrated Wealth and Power are Ruining Our Lives and Planet.
My daughter, a librarian in Tucson, paid more taxes in 2017 than Donald Trump. So did my neighbor Rita, a teacher, and her son Tony, who stocks grocery shelves in Leland, Michigan
I also pay more in taxes than the president of the United States. And, probably, so do you.
We now understand why Trump was the first presidential candidate since the 1970s not to divulge his tax returns.
In 2016 and 2017, the billionaire paid just $750 each year in taxes to the U.S. Treasury. In 10 out of 15 years between 2001 and 2017, Trump paid zero taxes.
The average middle class household paid approximately three times as much in federal taxes as Trump did in 2017, an average of $2,200 based on an income of roughly $60,000. Any individual earning over $25,000 most likely paid more than the president.
It's not that Trump wasn't paying taxes at all. In 2017, Trump paid $156,824 in taxes in the Philippines and $145,500 in India. He just wasn't paying them to support veterans, build roads, or protect seniors in this country.
The other secret Trump doesn't want you to know is that his image as a wealthy successful business mogul is a mirage.
Over the decades, Trump personally lobbied Forbes Magazine to report that he was wealthier than he really is. Two decades of tax returns, however, reveal he is a man in deep financial doo-doo. He may even owe more than he owns.
Trump's real estate and resort businesses are mostly money losers, contributing to hundreds of millions of tax-deductible business losses each year.
On top of these losses, Trump deducts tens of millions in lavish personal living expenses -- such as $70,000 in hair styling, consulting fees to his children, and mansion retreats -- to reduce his tax obligations.
Only someone with Trump's army of tax attorneys and wealth managers could pull off these loopholes. Trump's assets are spread over 500 different corporate shells, enabling limitless shifting and gaming of income and taxes.
Trump takes advantage of the fact that there are two tax systems in America: one set of rules for the super-rich and another set of rules for everyone else.
Most of us get our incomes from paychecks and government agencies that know exactly how much we are paid and often withhold our taxes before we even see the money.
Wealthy people with incomes over $2 million and assets over $20 million get most of their income from investments, ownership of assets, and businesses. There are endless games they can play to manipulate their income. And they can afford to hire accountants and tax lawyers to maneuver their taxes downward.
If you lose money, you grow poorer. But when the super-rich create paper losses to offset their taxes, they're still rich. And like Trump, they aren't sacrificing anything in terms of their cushy standard of living.
These tax shenanigans are all the more unseemly in the face of a pandemic that's destroyed the wealth, health, and livelihoods of millions. Tens of millions of families have lost jobs, savings, home equity, and any other economic security they may have had.
They will not be "carrying over" these losses into future years and virtually eliminating their taxes for a decade, as Trump did.
Instead, they'll pay income taxes on unemployment insurance, stimulus checks, and any paycheck they've been able to eke out. There will be no deductions for haircuts or consulting contracts for their children.
Trump's taxes reveal the real truth. He's more about the art of the deduction than the art of the deal.
If there's a silver lining, it's that Trump's tax manipulations reveal where the weak spots are in the current system. Congress should restore fairness and integrity to a tax system that has been pillaged by the super-rich.
Chuck Collins
Chuck Collins is co-founder of CARP and author of Burned by Billionaires: How Concentrated Wealth and Power are Ruining Our Lives and Planet.
My daughter, a librarian in Tucson, paid more taxes in 2017 than Donald Trump. So did my neighbor Rita, a teacher, and her son Tony, who stocks grocery shelves in Leland, Michigan
I also pay more in taxes than the president of the United States. And, probably, so do you.
We now understand why Trump was the first presidential candidate since the 1970s not to divulge his tax returns.
In 2016 and 2017, the billionaire paid just $750 each year in taxes to the U.S. Treasury. In 10 out of 15 years between 2001 and 2017, Trump paid zero taxes.
The average middle class household paid approximately three times as much in federal taxes as Trump did in 2017, an average of $2,200 based on an income of roughly $60,000. Any individual earning over $25,000 most likely paid more than the president.
It's not that Trump wasn't paying taxes at all. In 2017, Trump paid $156,824 in taxes in the Philippines and $145,500 in India. He just wasn't paying them to support veterans, build roads, or protect seniors in this country.
The other secret Trump doesn't want you to know is that his image as a wealthy successful business mogul is a mirage.
Over the decades, Trump personally lobbied Forbes Magazine to report that he was wealthier than he really is. Two decades of tax returns, however, reveal he is a man in deep financial doo-doo. He may even owe more than he owns.
Trump's real estate and resort businesses are mostly money losers, contributing to hundreds of millions of tax-deductible business losses each year.
On top of these losses, Trump deducts tens of millions in lavish personal living expenses -- such as $70,000 in hair styling, consulting fees to his children, and mansion retreats -- to reduce his tax obligations.
Only someone with Trump's army of tax attorneys and wealth managers could pull off these loopholes. Trump's assets are spread over 500 different corporate shells, enabling limitless shifting and gaming of income and taxes.
Trump takes advantage of the fact that there are two tax systems in America: one set of rules for the super-rich and another set of rules for everyone else.
Most of us get our incomes from paychecks and government agencies that know exactly how much we are paid and often withhold our taxes before we even see the money.
Wealthy people with incomes over $2 million and assets over $20 million get most of their income from investments, ownership of assets, and businesses. There are endless games they can play to manipulate their income. And they can afford to hire accountants and tax lawyers to maneuver their taxes downward.
If you lose money, you grow poorer. But when the super-rich create paper losses to offset their taxes, they're still rich. And like Trump, they aren't sacrificing anything in terms of their cushy standard of living.
These tax shenanigans are all the more unseemly in the face of a pandemic that's destroyed the wealth, health, and livelihoods of millions. Tens of millions of families have lost jobs, savings, home equity, and any other economic security they may have had.
They will not be "carrying over" these losses into future years and virtually eliminating their taxes for a decade, as Trump did.
Instead, they'll pay income taxes on unemployment insurance, stimulus checks, and any paycheck they've been able to eke out. There will be no deductions for haircuts or consulting contracts for their children.
Trump's taxes reveal the real truth. He's more about the art of the deduction than the art of the deal.
If there's a silver lining, it's that Trump's tax manipulations reveal where the weak spots are in the current system. Congress should restore fairness and integrity to a tax system that has been pillaged by the super-rich.
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