This is driving me crazy

[mothra1orbit]

Given that Donald Trump can legally pay no federal income taxes because of the way the tax code is structured, and given that this is only what a smart businessman would do, how come the centerpiece of every fucking Republican platform is a plank *lowering* the tax rate for the wealthiest citizens? If they're already paying fucking NOTHING, why and how do they want to pay less? Are we supposed to write them a check or something?

[RBInMaine]

1. Exactly! The beauty here is this all adds to Hillary's argument for INCREASING taxes on the RICH.

[Cicada]

5. Most rich people pay taxes, unlike Donald

For some reason Donald had tax losses exceeding his income by more than 900 million dollars in 1995. That excess loss can be carried forward as deduction against future income until it is used up, for as long as 18 years. That probably explains why Donald has paid no or very little tax. But most rich people don't screw up so badly that they lose a billion dollars in a year. So they owe tax and need tax rates to be lower for a much bigger yacht etc.

[oberliner]

7. The problem is that the super rich find ways to move money around

And can do the sorts of shenanigans Trump and his people do here to avoid getting hit with taxes.

The somewhat rich folks have a much harder time with this sort of thing.

[TheMastersNemesis]

2. No The Schtick Is That The Rest Of Us Pay The Rich By Giving Them Money For Being Rich.

Lowering taxes on the rich means that the middle class pays a stipend to the rich. That means instead of zero taxes we give them money like an allowance. So if you are a billionaire we give them a huge check every year out of the US Treasury. Look at it this way if you are given a check for $1,000,000 for every billion you have in net worth. So if you are worth $34 billion you bet a $34,000,000 check as a BONUS.

[Cracklin Charlie]

3. You have to be a supporter to understand the logic.

That you don't understand is a good thing. Congratulations, you are a thinking human being!

And welcome to DU!

[Wounded Bear]

4. It's part of the smoke and mirrors they use....

The truth is that TAX RATES for corporations in American remain fairly high. However the dodges and deductions and deferrals are what allow them to actually pay some of the lowest real tax receipts in the industrial world.

So they can run on "cutting taxes" while knowing that their bottom line won't change in a negative direction. Plus, they won't allow a tax increase unless and until they can offset that with their accounting tricks and dodges.

The tax trick that Donald apparently took advantage of is not available to the average Joe. Anybody who thinks Trump would change a system he has been taking advantage of his entire business career is naive beyond belief.

[oberliner]

8. Well said

it's all about figuring how to make it impossible for the super rich to dodge.

[dawg]

6. It wasn't because of loopholes in the tax code ...

it was because he was so profoundly incompetent that he lost nearly a billion dollars in one year's time (in the middle of an economic boom).

[oberliner]

9. Or that he was able to claim that much in losses

When perhaps he had money and assets hidden elsewhere.

[dawg]

10. It's hard to claim losses like that without actually losing a shit ton of money.

True, some of the losses can be "paper" losses such as depreciation. But even those are at least somewhat reflective of underlying economic reality.

The guy is more of a loser than people realize. He may be running for President because he needs the money and thinks it will enhance his "brand". But if so, he's wrong about that, too.

[oberliner]

11. Fair point

I don't really know enough about the various shenanigans the super rich are able to pull to avoid paying taxes.

It just seems like they always find a way!

[2naSalit]

12. That was probably the point...

Once there was a legal avenue for gaining from loss in a major way, he had sleazy accountants and lawyers to make that happen on paper so he would be free to weasel and pilfer with reckless abandon and incurring no consequence, in fact actual gains at taxpayer expense.

If you operate at a loss, you end up gaining, and that's where his mind is trapped.

[dawg]

13. It really doesn't work that way.

The guy is actually a loser. (Unless, of course, he simply lied on his return.)

You don't end up gaining by operating at a loss. The math doesn't work that way. Especially when the loss is almost a billion dollars.

There are plenty of tax-avoidance schemes the rich can use to reduce or avoid taxes entirely. This isn't one of them. This is actual failure. Sad.

I'm a sleazy accountant, myself. I would have made this guy pay for his return in advance. I wouldn't have finished until I was sure the check had cleared!