The bombshell revelations that President Donald Trump paid just $750 in federal income taxes the year he ran for office and paid no income taxes at all in many others, threatens to undercut a pillar of his appeal among blue-collar voters. (Sept. 28)
STEVE WAMHOFF: Those years when Trump paid $750, well, the average personal income tax liability for the person who makes between $20,000 and $25,000 is like more than $1,100. So we have to have some sort of rules, but the rules we have in place are very easily beat by wealthy business people and they're particularly lenient for real estate investors.
They can, the rules for real estate investors are such that they can avoid reporting profits to the IRS more easily than other people. But when it comes to losses, they can much more easily report losses to the IRS. And you put them together, real estate investors sometimes, it can go years and years without ever having to report anything to the IRS and they can go years without paying taxes.
And that's what we've seen with Trump. Trump has a lot of losses that are just real losses. It turns out he's a terrible businessperson, right? So no matter what the tax rules are, Trump would be reporting losses, right? But I think that what we're seeing here is, the situation is that combined with all the special breaks in the tax code, it allowed him to live like a billionaire for all these years and yet, pay nothing in taxes most years.