Here's the Biggest Revelation From Donald Trump's Leaked Tax Return

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Link to tweet

____ Donald Trump earned $150 million and paid $38 million in taxes in 2005, according to the cover page of his tax returns from that year, which were leaked to reporter David Cay Johnston and highlighted on the Rachel Maddow Show Tuesday night. According to an analysis of the returns posted on Johnston's website, Trump and his wife Melania paid just $5.3 million in income taxes, a rate of about 4 percent. The couple paid another $31 million in the alternative minimum tax.

During the 2016 campaign, Trump called for the elimination of the alternative minimum tax (AMT), which is a tax designed to make sure that all taxpayers pay a certain amount even if they manage to reduce their tax liability. In his proposed tax policy, Trump would create just four tax brackets and do away with the AMT...

Appearing on Maddow's show, Johnston said the cover pages of Trump's 2005 return were sent to him and he was unsure by whom. The fact that Trump paid little in the way of income taxes—he should have paid a rate of about 35 percent—is what is important, Johnston noted. If not for the AMT, Trump would have paid an extremely low rate.

"On $153 million, almost, of income, he would have paid a little over $5 million," Johnston said, pointing out that would be a rate of less than 4 percent. Johnston said that rate is less than half of what the lowest tax rate is for Americans who make the least money.


read more: http://www.motherjones.com/politics/2017/03/donald-trump-leaked-2005-tax-returns-maddow

[jmg257]

1. Unless they also limit the amount of deductions along with the AMT.

[HoneyBadger]

2. Mother Jones does not understand how AMT works

[Egnever]

4. Ugh

How do they have it wrong? I do not doubt you a bit just wondering what the real implications are.

[bettyellen]

6. They're quoting Johnston and I think he's a tax expert- what is incorrect ?

[Bernardo de La Paz]

7. Are you just trying to play us or do you have the explanation you should have included?

If you have it, it is past due.

If you know how AMT works, then please explain how it applies in this case, and how Mother Jones does not understand it and where they went wrong.

[pnwmom]

8. Yes, they do. Apparently you don't. n/t

[TheBlackAdder]

3. Bingo! It's heading in the right direction. Thanks for posting.

[dchill]

5. "He'd make out like a bandit."

David Cay Johnston on The Last Word.

[pat_k]

9. AMT enacted by with Repubs in control of Senate and signed by Reagan

I'm going to start calling AMT "Reagans tax"

The concept dates back to Johnson and the "minimum tax' passed in 1969. It went through various reforms. In 1982 we have the following: (Can you imagine such a headline today?)

Republicans Eye Bigger Tax Increase
https://www.washingtonpost.com/archive/politics/1982/03/11/republicans-eye-bigger-tax-increase/94d5a255-aba3-4484-a027-87bb983512dd/?utm_term=.bf51e63d09bd

Dole listed a number of tax changes which he has already publicly endorsed or signaled support for. These include an Alternative Minimum Tax for corporations and individuals, raising $4 billion in 1983 and $8 billion in 1984. Wealthy individuals who pay little or no tax would be required to add back all deductions, take a $50,000 exemption, and then pay a tax set at 15 percent of the remaining income.

The tax reform efforts resulted in the Tax Equity and Fiscal Responsibility Act of 1982, which included revenue enhancement methods including the creation of a minimum corporate tax.