Donald J. Trump is proud of the fact that he did not pay federal income tax for many years. The Republican candidate for the White House used tax loopholes to get out of paying taxes as part of his business plan. One of the reasons for which he has successfully amassed a fortune is using technicalities in the law in his favor. Donald J. Trump is unapologetic when it comes to not paying taxes. During a presidential debate, his opponent, Hillary Clinton raised the issue of Donald J. Trump’s tax avoidance. The Republican candidate didn’t agree that what he did makes him dishonest. Instead he said that it makes him “smart”.
Donald J. Trump Doesn’t Like Paying Taxes
Donald J. Trump insists that what he did is no different from what other billionaires have done. Exploiting tax loopholes is something that everybody does, according to Donald J. Trump. He even accused fellow billionaire, Warren Buffett, of using the same practices. But Warren Buffet is a supporter of Hillary Clinton and cares very much about his reputation. So, Buffett released his taxes to show that he has consistently paid federal tax and to disprove Trump’s allegations. The Republican candidate did not react in any way to Warren Buffett’s response.
So, it looks like not everybody uses Trump’s tactics to get out of paying tax. The methods that the Republican candidate used are very creative and required the efforts of a team of lawyers and accountants. But Donald J. Trump feels that he was only making the most of what the tax laws make possible. If anything, he blames politicians and the tax system for letting him get away with it. At a campaign rally, he asked why Hillary Clinton didn’t close those tax loopholes while she was in the United States Senate.
“Why didn’t she ever try to change those laws so I couldn’t use them?”
asked Republican candidate Donald J. Trump at a campaign rally.
Donald J. Trump Used Tax Loopholes in the 1990s
However, documents that the press recently obtained show that the legality of Trump’s tax avoidance methods falls in a grey area. During the early 1990s, after suffering heavy losses, Donald J. Trump was trying to stay afloat financially. He used a loophole to avoid reporting hundreds of millions of dollars in income. But not declaring that taxable income was not as straightforward as the Republican candidate sometimes makes it look. Internal communication between Trump and his team of lawyers shows that his lawyers had concerns about the practice. They warned their client that the Internal Revenue Service would declare the maneuver improper in an audit. His lawyers even offered a back-up plan should the Internal Revenue Service look into Donald J. Trump’s taxes.
The maneuver that Trump used in the 1990s was later outlawed by Congress. But Donald J. Trump had already used it to escape tens of millions of dollars in federal personal income tax. Since the Republican candidate has not released his tax returns, it’s difficult to tell how high the amount is. Releasing your tax returns is a practice that presidential candidates have adhered to for the past four decades. Donald J. Trump is the first presidential candidate in a long time to refuse to release even a summary of his taxes. When pressed on the issue, the Republican candidate pivots to the subject of Hillary Clinton’s emails. He has said several times that he will release his taxes when his Democratic opponent releases her emails.
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