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Democrats release Trump’s tax returns, and factor in: “In order to make these kinds of losses, you would have to be fabulously rich.” It’s not a poor man’s game.

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The results of the commission are also nonpartisan It raised several red flags related to depositswhich are Trump’s carry-over losses, loans to his children that may or may not also count as taxable gifts, and a tax write-off related to the withholding.

That year, with the spread of the COVID pandemic, Trump reported a loss $4.8 million. For 2018 and 2019, the then-president’s declared income increased and they paid nearly $1.1 million in federal taxes each year.

The Internal Revenue Service only began auditing Trump’s 2015 tax filings on April 3, 2019, more than two years into his presidency, which some commentators say is a sign of strained resources at the IRS.

“Just like any other American, the President of the United States is obligated to pay taxes owed,” says an internal IRS memo released earlier this month. “This is a fundamental responsibility of our common citizenship: without tax revenues, our government will cease to exist.”

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In a statement released Friday by the Trump campaign, the former president said his returns show “how proud I am of the success you’ve had.”

Experts say the US tax code cuts both ways. “Government deliberately makes laws that have two goals,” said Charles Renwick, a CPA expert and author of the forthcoming book.All chiefs taxes. “One is to raise money and the other is to stimulate behavior. Real estate investing is obviously motivated by the tax law.”

Renwick noted that people who lose money and therefore have no income pay no taxes. There is another scenario where [Trump] He lost money on paper but made money on basic economics. If so, it is a result of incentives in the tax code and not necessarily the result of any wrongdoing. He probably did it right, he said.

“Trump is engaged in activity that is very much motivated by the current tax law,” he said.

One of the disclosures includes Trump’s foreign bank accounts in Ireland, the United Kingdom, China and St. Maarten. “We already knew he owns large buildings with Chinese partners (555 California St. San Francisco),” Renwick told MarketWatch.

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“Disclosures like this are black and white,” he said. Remember, his former campaign chief, Paul Manafort has been convicted of tax fraud For not disclosing foreign bank accounts, and this is obviously an important disclosure from the point of view of providing transparency.”

Jonathan Meadows, managing director at Medows CPA PLLC, based in New York, agrees that — based on revelations about Trump’s 2020 income taxes — the former president’s tax returns highlight ways Americans can use the tax law to reduce their tax burden.

He said business owners and investors can speed up certain deductions. “Normally, that’s in real estate, by the way,” he said. You can lose a lot of money on paper and return the capital to the investors but still have a cash flow. The bottom line: in order to generate these types of losses, you have to be extremely wealthy. It’s not a poor man’s game.”

Karla Dennis, Founder, Karla Dennis and Associates, Inc. In La Palma, Calif., a registered tax agent and business consultant, a broader plan is in place for Americans: “Wealthy people are more aware of their options.”

“Most tax actors focus on tax compliance, and fewer taxpayers are looking at the year-round tax strategy they can use to reduce their tax bill,” she added. “If you study for an exam, you will get an A+.”

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Inequality in the American tax system

How progressive is the progressive tax system? Meadows said the middle class in the United States ends up bearing the tax burden, while the rich have more ways to reduce what they owe the IRS.

He cites the 6.2% Social Security tax as an example. The maximum amount of earnings subject to Social Security tax (the maximum tax) will An increase to $160,200 from $147,000 in January. People who earn more than this cap will be paid the same as someone who earns $160,200.

“If you’re self-employed, if you’re middle-class, you pay that tax [on all your earnings]”But if you’re super rich and make $3 million, you’re only paid on the first $160,200 of your earnings,” Meadows told MarketWatch. “Your biggest salary they don’t pay.” You have middle class people paying it. “This is a hidden tax,” he said.

“I don’t know how advanced the American tax system is,” he concluded.

And Donald Trump? “For all I know, he may simply have been a deeply failed businessman whose very real losses have reduced his net worth over the past two decades,” Gary Bertlis, a senior fellow at the Brookings Central Institution, told MarketWatch.

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However, Pertlis, who does not claim to be an expert on Trump’s taxes, sees inequality in the American tax system. If we define the “very rich” as Americans with very high pre-tax incomes in the current tax year, I would agree with most of my fellow citizens in thinking that it is outrageous that people who are “very wealthy” pay zero dollars in current income taxes. The theory of the income tax system is Our progressive is that each US resident’s tax liability should represent an increasing share of their pre-tax income as their pre-tax income increases.

On the other hand, he continued, “if we define the ‘very wealthy’ as Americans with a very high net worth, it’s easy for me to imagine that some of those ‘ultra rich’ would not owe any income taxes in a given year—for example. , in a year in which their pre-tax income in the current tax year is very low or negative.”

Wealth tax vs. income tax

Let’s consider farmers with farms worth $2 million or more, Bertlis said. “If they reap a terrible harvest, their gross income may be very low or even negative, despite the fact that they remain very wealthy under the ‘net worth’ definition. Our progressive income tax is not a wealth tax; it is an income tax.”

Keep in mind, he added, that some states and many localities levy real estate taxes on land, property improvement, and certain categories of real property. In this situation, wealthy farmers may still be responsible for large property taxes, even in years when there are very low or no federal income tax liabilities.

“In my view, if voters want to tax everyone with a high net worth, they should consider creating a comprehensive wealth tax,” Pertles added. “A progressive income tax is not the most sensible way to achieve this goal.”

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This year, some 72.5 million American households, or 40%, will not pay federal income tax, down from the epidemic high level of 100 million households, or 60%, two years ago, according to estimates from the Tax Policy Center. In 2021, nearly 56% of households, or 99 million, paid no federal income tax, the nonpartisan think tank said in a report released earlier this year.

“I don’t want to be poor with anyone,” said Meadows. “I’d rather pay my taxes. My wife works at a public hospital. My dad, God rest his soul, was a public defender. He got health insurance. Unless you work for a big company, not many middle-class people can afford medical insurance. The system is rigged against the middle class.” “.

For presidential tax returns, Renwick said full transparency should also require former presidents to release their tax returns after they leave office to show what, if any, foreign business deals they entered into that could have been affected by their policies and other dealings while in office. .

“Are we going to see all of his informational returns, like his partnership and trust returns?” Renwick has been added. All of these things are sources of value that lead to potential conflicts of interest. If the goal is to increase transparency, if the goal is to identify conflicts of interest, if the goal is to know they’re paying their fair share, if the goal is to see if they have foreign business dealers – there’s more information that needs to be released.”

“The personal tax return is just the tip of the iceberg,” he said.

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Commuters from the Southwest threatened arrest at Christmas in a viral video

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Southwest Airlines He already had it Terrible end of the year After a massive winter storm forced it to cancel flights that had outsold its industry competitors. Then, somehow, the PR nightmare got worse.

At Nashville International Airport on Christmas Eve, a police officer threatened to arrest stranded Southwest passengers if they did not leave a secure area of ​​the airport. A video of the incident went viral on social media after it happened Posted by passenger to TikTok. Other videos circulating on social media also captured parts of the incident.

In the video, which has been viewed more than 910,000 times since it was posted two days ago, the officer warns passengers that they must leave the area or they will be “arrested for trespassing.”

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“Now,” he continued. “Everyone to the unsafe side. The ticket counter will help you answer any questions you have.”

Shelly Morrison, who was among the passengers with her three daughters, was queuing at the southwest gate hoping to get more information about what was going on with her flight, to me the Tennessee.

After she and others waited nearly an hour for an explanation, one of the workers announced via the intercom that she was leaving – and called security. Morrison told the local newspaper that he did not tell a passenger that they had to leave if they had a canceled ticket.

“The Southwest is calling us”

Soon, two police officers from the airport’s Department of Public Safety arrived at the scene, just as Morrison’s daughter, Amani Robinson, began recording a video.

An officer tells passengers in the video, “If you don’t have a ticket, you don’t have to be on the safe side.” To someone who said they had tickets, he replied, “Your tickets just got cancelled.”

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Morrison asked the officer again if he might be stopped, and he repeated to him: “If you don’t have a valid ticket and you’re on the safe side and you refuse to leave, you’ll be arrested… If your ticket’s canceled, they don’t have a ticket anymore. You understand that, right?”

He added, “Right now, Southwest is calling us because you guys are congregating here, and they’re trying to close that gate.”

The officer grew impatient when Morrison again tried to “establish a legal connection,” as she puts it in the video, and told him she was an attorney.

“Do you refuse to leave the safe side?” he asked clearly.

She replied, “No, I don’t refuse to leave.” “I ask for additional information. Can you mention the statue to me?”

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He replied, “It is the security of airports and planes.”

“Don’t you have a department?” she asked.

“I don’t need to give you the code. If you’re a lawyer, you can look it up.”

Morrison thanked him and went with the others to where he had indicated.

Southwest responds

when called luckA Southwest spokesperson said that employees “did not request that customers be escorted outside the gate area.” Instead, the company required “that local law enforcement be present at the gate to assist with crowd control efforts while our team works with customers.”

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A spokesperson for Nashville International Airport, also known by the airport code BNA, responded:

“The sheer number of flight cancellations over the past week has caused great stress for our passengers, and included an unfortunate incident involving a passenger, airline staff and an LNA officer. We are very sorry this happened and we take this situation very seriously. We are working with Southwest Airlines and our other airlines to promote better communication between team members so that every traveler enjoys the optimal experience at BNA:

luck She also contacted the Ministry of Transport regarding the airport incident, but did not receive any immediate response.

Southwest passengers trying alternative routes faced higher fares from other airlines, some of which — faced public backlash —Announce a price cap on the affected roads.

The Department of Transportation said this week it would open an investigation into Southwest Airlines. He. She he wrote in a tweet It was “concerned by Southwest’s unacceptable rate of cancellations, delays, and reports of a lack of prompt customer service. The department will study whether cancellations are manageable and whether Southwest is complying with its customer service plan.”

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This article has been updated with responses from Southwest Airlines and the airport.

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Why Trump didn’t want you to see his tax returns

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What was he hiding?

We’re finally starting to find out, now that the House Ways and Means Committee has released six years of Donald Trump’s personal and business tax returns. Trump’s returns are complex and it could take weeks for experts to realize whether Trump cheated or used overly aggressive tactics to lower his tax bill. The committee did not release any tax documents for some of Trump’s business entities, so puzzles may remain.

But a few things soon emerge from the assessment of the leading figures in Trump’s comeback. When Trump announced his candidacy for the presidency in 2015, he described himself as a builder and businessman who could go to Washington and fix what politicians had destroyed. Trump’s stated status was as a political outsider and business titan crucial elements in his appeal to voters.

But Trump’s tax returns suggest his businesses are always losing money, while raising questions about how he manages to fund a gilded lifestyle. In each of the six years from 2015 through 2020, DJT Holdings, one of Trump’s main business entities, lost millions of dollars. The smallest loss was $34 million in 2015. The largest loss was $64 million in 2016. Combined, these losses totaled $314 million from 2015 through 2020.

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This is not an entirely new revelation. Glimpses of Trump’s finances have long revealed that Trump is capitalizing heavily on losses incurred in one part of his business portfolio, to offset gains elsewhere and significantly reduce his tax bill. Documents leaked to the New York Times in 2016 showed that Trump declared a loss of $916 million in 1995. lowered his tax bills for nearly two decades. When Trump began earning millions from The Apprentice TV show in the 2000s, losses from faltering real estate ventures, such as his casinos in Atlantic City, helped keep his income tax payments down. These practices are generally legal, although some tax experts believe Trump could have expanded the legal boundaries.

Members of the US House of Representatives Ways and Means Committee move boxes of documents after a panel meeting to discuss former President Donald Trump’s tax returns on Capitol Hill in Washington, US, December 20, 2022. REUTERS/Jonathan Ernst

When Trump ran for president in 2016, he said he would release his tax returns once the IRS finished auditing them. Of course Trump never released any tax returns, and the IRS audit wouldn’t have stopped him from doing so in the first place. Ways and Means Committee Finally got Trump’s payout from the IRS on Dec. 20, after Trump lost a four-year legal battle to keep them secret. He found justices all the way up to the Supreme Court Congress had the right to see the proceedsbecause it can contribute to legislative activity.

[Follow Rick Newman on Twitter, sign up for his newsletter or sound off.]

If Trump had released his comeback in 2015 while running for president in 2016, journalists and political opponents would have been mired in what appears to be huge business and personal losses. His return to DJT Holdings shows total revenue of $25.1 million but a net loss of $34.1 million. It is reasonable for a company to incur losses greater than revenue, since tax code allows for carry-over losses from prior years. But it’s very bad looks to tell voters you’re a business owner while reporting large losses to the IRS.

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Trump and his wife Melania’s 2015 comeback undermines his commercial credibility. Trump’s adjusted gross income in 2015 was $31.8 million. In other words, he supposedly lost $31.8 million, because he was allowed to claim losses from his business against his personal income. His taxable income was $0 and he owed $0 in federal income tax. It is difficult for average workers who earn most of their income from work to declare passive income, unless they have capital losses or other types of losses beyond what they earn from their employer.

Hillary Clinton, Trump’s Democratic opponent, She released her tax return for 2015 on August 12, 2016. The report showed that she and her husband, Bill Clinton, had an adjusted gross income of $10.6 million, and paid $3.6 million in federal income tax, for an effective tax rate of 34%. While the return showed the Clintons wealthy, they claimed no mysterious tax breaks except for a small capital loss of $3,000. Trump was the nominee going after meat-and-potatoes voters in 2016, but Clinton’s taxes were more involved.

DJT Holdings reported business losses for each of the next five years, through 2020. In terms of Trump’s personal returns, his adjusted gross income has been negative for three years and positive for two years. Over the six years combined, those business losses have pushed Trump’s total adjusted income – $53.2 million, or a loss of $53.2 million. His taxable income was $0 for four out of six years.

Trump has hit one snag with regard to federal income tax payments — the alternative minimum tax, which raises the tax liability of some, mostly wealthy, depositors who use the deductions to significantly lower their taxable income. During four of those six years, the federal tax code started to push Trump’s federal tax bill. Including regular income tax and AMT payments, Trump appears to have paid about $4.1 million in federal income taxes from 2015 through 2020.

If voters had been able to see several years of Trump’s tax returns during the 2020 presidential election, it would have been clear that Trump’s corporations lose money every year and that Trump as an individual loses more money than he earns, overall. This isn’t really how it works. Trump has very few regular sources of income, such as millions of dollars in interest each year, and the capital gains that would come from the countless deals to license the Trump name. This income appears to be constant and recurring, while losses may occur in a particular year or two, but are spread across many years, for tax purposes.

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Trump has sometimes bragged about the low taxes he’s paid, saying he’s drastically undercutting his tax bill It makes him smart. Maybe so. It will be interesting to see if that makes him more or less electable.

Rick Newman is a senior columnist for Yahoo Finance. Follow him on Twitter at @tweet

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Chinese education files Ruanyun Edai to raise up to $35 million via US IPO (pending: RYET)

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da-cook

Chinese education technology Ruanyun Edai Technology (Rhett) Apply to raise up to $35 million through an initial public offering in the United States.

Ruanyun said in file that she was considering offering 5 million common shares at between $5 and $6 a share, which might happen

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