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Key Takeaways and Reaction to the NYT Report on Trump’s Tax Returns

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  • A bombshell report from The New York Times detailed 18 years’ worth of information regarding President Donald Trump’s federal income taxes. 
  • In both 2016 and 2017, Trump paid only $750 in federal income taxes each year, according to the report. 
  • Among other claims, it also alleges that for 11 of the years between 2000 and 2018, Trump paid no federal income taxes because he reported losing more money than he made at many of his signature businesses.
  • Trump has since dismissed the report as “fake news,” arguing, “I paid many millions of dollars in taxes but was entitled, like everyone else, to depreciation & tax credits.” 

NYT Releases Data from Trump Tax Returns

The New York Times published a bombshell report on Sunday, which outlines decades of information relating to President Donald Trump’s federal income taxes.

Trump’s tax records have been fiercely sought after for years, dating back to when he refused to release them as a presidential candidate in 2016.

According to The Times, which claims to have obtained Trump’s tax records dating from 2000 to 2018, Trump paid just $750 in federal income taxes in 2016. The next year, his first in office, he paid another $750 in federal taxes.

Even more significantly, in 11 of those 18 years, The Times alleges that Trump paid no federal income taxes at all.

As for how he was able to do that, it was largely because he reported losing much more money than he made at many of his signature businesses.

For example, The Times reported that Trump made $427 million from “The Apprentice,” as well as licensing and endorsements deals associated with his name. Trump then invested much of that money in a collection of businesses, mainly golf courses that steadily became money holes.

In fact, since 2000, Trump has reported losses of more than $315 million at his golf courses, losses of $55 million between 2016 and 2018 at his D.C. hotel, and losses of $134 million at Trump Corporation since 2000.

“The tax returns that Mr. Trump has long fought to keep private tell a story fundamentally different from the one he has sold to the American public,” The Times reports. “His reports to the I.R.S. portray a businessman who takes in hundreds of millions of dollars a year yet racks up chronic losses that he aggressively employs to avoid paying taxes.

“Now, with his financial challenges mounting, the records show that he depends more and more on making money from businesses that put him in potential and often direct conflict of interest with his job as president.”

“Consulting Fees” Paid to Ivanka Trump

The Times reported that the filings showed a laundry list of business expense write-offs, including more than $70,000 paid to style Trump’s hair during “The Apprentice.”

Notably, Trump entities also wrote off at least $95,000 that was paid out to a hair and makeup artist of his daughter, Ivanka Trump. The media outlet added that Mr. Trump wrote off expenses like meals and fuel associated with the aircraft he used “to shuttle him among his various homes and properties.”

Among other claims, between 2010 and 2018, Trump wrote off around $26 million in unexplained “consulting fees” as business expenses.

While The Times notes that there’s no evidence Trump engaged in bribes or kickbacks to middlemen, it also notes that Trump may have reduced the amount of his income that could be taxed by treating a family member as a consultant.

The Times believes that that family member was Ivanka. That’s because in 2017, Ivanka reported receiving nearly $750,000 from a consulting company she co-owned — the exact amount the Trump Organization also claimed as tax deductions for hotel projects in Vancouver and Hawaii.

The big kicker is that Ivanka is also an executive officer of the Trump companies that led those projects — “Meaning she appears to have been treated as a consultant on the same hotel deals that she helped manage as part of her job at her father’s business.” 

The Times added that if the payments to Ivanka were compensation for work, it’s unclear why Trump would do it in this form “other than to reduce his own tax liability.”

The “consulting fees” also raise another possibility: that this could have been a method for Trump to transfer assets to his children while avoiding a gift tax.

There, The Times points back to a 2018 Times investigation which discovered that Trump’s father had “employed a number of legally dubious schemes decades ago to evade gift taxes on millions of dollars he transferred to his children.”

The Times also pointed to a situation where a person directly involved in developing two Trump Towers in Istanbul said that there was never any consultant or other third party in Turkey paid by the Trump Organization. That’s despite The Times’ finding that Trump’s records “show regular deductions for consulting fees over seven years totaling $2 million.”

Trump’s Foreign Investments

The Times reported that they were “able to take the fullest measure to date of the president’s income from overseas, where he holds ultimate sway over American diplomacy.”

The outlet goes on to note that Trump said he wouldn’t pursue new foreign business deals when he took office in 2017, but during his first two years in office, his revenue from abroad was $73 million.

While much of that money was from his golf properties in Scotland and Ireland, some came from licensing deals in countries with authoritarian-leaning leaders or thorny geopolitics — for example, $3 million from the Philippines, $2.3 million from India and $1 million from Turkey,” the outlet reported. 

Notably, The Times explicitly stated that the documents it obtained did not “reveal any previously unreported connections to Russia.”

How Much Trump Owes

According to The Times, Trump is personally responsible for loans and other debts totaling $421 million, with most of that due within the next four years.

“Should he win re-election, his lenders could be placed in the unprecedented position of weighing whether to foreclose on a sitting president,” the outlet reported. 

On top of that, Trump reportedly has $100 million due in 2022 for a mortgage on the commercial space in the New York Trump Tower. Up to 2018, he had only paid interest on the loan but not the loan itself. 

To round it off, confidential records show that starting in 2010, Trump “claimed, and received, an income tax refund totaling $72.9 million.” That’s the sum total of all the federal income tax he had paid for 2005 through 2008, plus interest.

That refund is actually already the subject of a long-standing and widely-known IRS audit, but if Trump is ultimately forced to pay back this refund, he’ll also be forced to return that money with interest and possible penalties. That could ultimately cost him $100 million.

Trump Responds to Bombshell Report

Alan Garten, a lawyer for the Trump Organization, told The Times that “most, if not all, of the facts appear to be inaccurate” and requested to see documents in question. 

The Times reported that when they declined his request in order to protect their sources, Garten “took direct issue only with the amount of taxes Mr. Trump had paid.”

“Over the past decade, President Trump has paid tens of millions of dollars in personal taxes to the federal government, including paying millions in personal taxes since announcing his candidacy in 2015,” Garten said. 

In response to that statement, The Times noted that Garten seemed to conflate “personal taxes” with other federal taxes Trump paid for his household employees. It added that Garten claimed Trump paid some of what he owed with tax credits, but it argued that was a mischaracterization of how those credits work.

As for Trump himself, in response to a reporter at a press conference, Trump dismissed the report as “fake news.”

“No,” Trump said on Sunday. “Actually, I paid tax. But — and you’ll see that as soon as my tax returns — it’s under audit. They’ve been under audit for a long time. The IRS does not treat me well.” 

“But they’re under audit. And when they’re not, I would be proud to show you. But that’s just fake news.” 

When asked if he could give people an idea of how much he was actually paying, he said, “Yeah, basically — well, first of all, I’ve paid a lot, and I paid a lot of state income taxes, too. The New York State charges a lot, and I paid a lot of money in state.” 

On Twitter Monday morning, Trump again called the report fake news and added, “I paid many millions of dollars in taxes but was entitled, like everyone else, to depreciation & tax credits.” 

“Also, if you look at the extraordinary assets owned by me, which the Fake News hasn’t, I am extremely under leveraged – I have very little debt compared to the value of assets.”

He then said he may release those financial statements, which he called “very IMPRESSIVE.”

Critics of the President

Soon after The Times article, Joe Biden’s campaign tweeted an ad that showed how much tax American workers like teachers and firefighters pay compared to the $750 Trump allegedly paid.

It is “the latest reminder how clear the choice is here in this race between Park Avenue and Scranton,” Biden’s deputy campaign manager, Kate Bedingfield, said. “You have in Donald Trump, a President who spends his time thinking about how he can work his way out of paying taxes, of meeting the obligation that every other working person in this country meets every year.”

Many others, including celebrities and politicians like Sen. Bernie Sanders (D-Vt.), echoed that point.

“Trump’s tax returns tell us that he’s either a very bad businessman or a tax cheat—likely both,” Sanders tweeted. “But more importantly, it shows how the wealthy, unlike most Americans, are able to avoid paying taxes.” 

Others also argued that Trump’s debts made him a threat to national security, with a Bloomberg columnist writing in a heavily circulated opinion piece: “Due to his indebtedness, his reliance on income from overseas and his refusal to authentically distance himself from his hodgepodge of business, Trump represents a profound national security threat – a threat that will only escalate if he’s re-elected.” 

Defense of the President

Others, particularly supporters of the president, condemned The Times for reporting the story, including Sen. Ted Cruz (R-Tx.).

“Well, I don’t know how accurate the story is. The New York Times didn’t release any of the underlying documents,” the senator said in an interview with The View.

“Apparently somebody illegally gave them a copy of something, some tax return documents. I don’t think it’s an issue that frankly impacts a whole lot of Americans.”

“But the point is I don’t know if it’s accurate or not. I don’t think it’s an issue that frankly impacts a whole lot of Americans.” 

Conservative commentator Candace Owens also reiterated that point on Twitter.

“It’s time for our Department of Justice to begin looking into the New York Times,” she wrote.  “I don’t care what you think of Trump— if government officials are turning over an individual’s federal documents in an effort to sway an election—it is a federal crime of epic proportions.”

Others claim the story was intentionally dropped two days before the first debate between Trump and Biden, which is set for Tuesday.

See what others are saying: (The New York Times) (Axios) (Associated Press)

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Judges Uphold North Carolina’s Congressional Map in Major GOP Win

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The judges agreed that the congressional map was “a result of intentional, pro-Republican partisan redistricting” but said they did not have the power to intervene in legislative matters.


New Maps Upheld

A three-judge panel in North Carolina upheld the state’s new congressional and legislative maps on Tuesday, deciding it did not have the power to respond to arguments that Republicans had illegally gerrymandered it to benefit them.

Voting rights groups and Democrats sued over the new maps, which were drawn by the state’s Republican legislature following the 2020 census.

The maps left Democrats with just three of North Carolina’s 14 congressional seats in a battleground state that is more evenly split between Republicans and Democrats. Previously, Democrats held five of the 13 districts the state had before the last census, during which North Carolina was allocated an additional seat.

The challengers argued that the blatantly partisan maps had been drawn in a way that went against longstanding rules, violated the state’s Constitution, and intentionally disenfranchised Black voters.

In their unanimous ruling, the panel — composed of one Democrat and two Republicans — agreed that both the legislative and congressional maps were “a result of intentional, pro-Republican partisan redistricting.”

The judges added that they had “disdain for having to deal with issues that potentially lead to results incompatible with democratic principles and subject our state to ridicule.”

Despite their beliefs, the panel said they did not have a legal basis for intervening in political matters and constraining the legislature. They additionally ruled that the challengers did not prove their claims that the maps were discriminatory based on race.

Notably, the judges also stated that partisan gerrymandering does not actually violate the state’s Constitution. 

The Path Ahead

While the decision marks a setback to the plaintiffs, the groups have already said they will appeal the decision to the North Carolina Supreme Court.

The state’s highest court has a slim Democratic majority and has already signaled they may be open to tossing the map.

There are also past precedents for voting maps to be thrown out in North Carolina. The state has an extensive history of legal battles over gerrymandering, and Republican leaders have been forced to redraw maps twice in recent years.

A forthcoming decision is highly anticipated, as North Carolina’s congressional map could play a major role in the control of the House in the 2022 midterm elections if they are as close as expected. 

See what others are saying: (Politico) (The New York Times) (The Wall Street Journal)

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Biden Administration Says Private Insurers Will Have to Cover 8 At-Home Tests a Month

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The policy will apply to all the nearly 150 million Americans who have private insurance.


New At-Home Testing Policy

The Biden administration announced Monday that private health insurers will now be required to pay for up to eight at-home rapid tests per plan member each month.

Under the new policy, starting Saturday, private insurance holders will be able to purchase any at-home test approved by the FDA at a pharmacy or online. They will either not be asked to pay any upfront costs or be reimbursed for their purchase through their provider.

The move is expected to significantly expand access to rapid tests that other countries have been distributing to their citizens free of charge for months. 

According to reports, nearly 150 million Americans — about 45% of the population — have private insurance. 

Each dependent enrolled on the primary insurance holder’s account is counted as a member. That means a family of four enrolled on a single plan would be eligible for 32 free at-home rapid tests a month.

Potential Exemptions

All tests may not be fully covered depending on where they are purchased. 

In order to help offset costs, the Biden administration is incentivizing insurance providers to establish a network of “preferred” pharmacies and stores where people in the plan can get tests without paying out of pocket.

As a result, health plans that do create those networks will only be required to reimburse up to $12 per test if they are purchased out of that network, meaning people could be on the hook for the rest of the cost.

If an insurer does not set up a preferred network, they will have to cover all at-home tests in full regardless of the place of purchase.

During a briefing Monday, Press Secretary Jen Psaki said tests should be “out the door in the coming weeks.”

“The contracts [for testing companies] are structured in a way to require that significant amounts are delivered on an aggressive timeline, the first of which should be arriving early next week,” she added.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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Biden Administration Unveils Plan To Replace All Lead Pipes

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The effort builds on the $15 billion allocated under the bipartisan infrastructure bill for lead pipe replacement, but industry leaders say $60 billion will be needed for nationwide revitalization.


White House Outlines Actions on Lead Pipes and Paint

The Biden administration rolled out a sweeping plan on Thursday to remove all the nation’s lead pipes over the next decade and take other steps to prevent lead paint contamination.

Lead, which was commonly used in piping for municipal water systems all over the country until it was banned in 1978, is a dangerous neurotoxin that can cause serious nervous system damage, especially in children.

Contamination from lead pipes seeping into water supplies has caused multiple high-profile public health and environmental catastrophes over the last decade, including the notorious crisis in Flint, Michigan.

According to a White House factsheet, an estimated 10 million households are connected to water through lead pipes. Children and teenagers in 400,000 schools and child care facilities also risk exposure to lead-contaminated water.

“Because of inequitable infrastructure development and disinvestment, low-income communities and communities of color are disproportionately exposed to these risks,” the factsheet stated.

To address those disparities and revitalize water systems across the nation, the White House outlined 15 new action items the Biden administration is taking, including:

  • Launching “a new regulatory process to protect communities from lead in drinking water” through the Environmental Protection Agency (EPA).
  • Clarifying that state, local, and Tribal governments can use the $350 billion aid allocated under the American Rescue Plan to replace lead service lines.
  • Establishing federally-operated regional technical assistance hubs “to fast track lead service line removal projects in partnership with labor unions and local water agencies.”
  • Awarding federal grants through the Department of Housing and Urban Development (HUD) to remove lead paint in low-income communities.
  • Directing the Centers for Disease Control and Prevention (CDC) to expand childhood lead testing.
  • Establishing “a new Cabinet Level Partnership for Lead Remediation in Schools and Child Care Centers.”

The White House also said it will direct the EPA to allocate $3 billion for state, local, and Tribal governments to replace lead pipes through funding that was approved under the bipartisan infrastructure bill signed by President Joe Biden last month.

A Matter of Funding

In total, Congress provided $15 billion to revitalize the nation’s lead-pipe systems under the infrastructure bill. 

However, industry experts have estimated that it will cost $60 billion to entirely overhaul all the remaining lead pipes in the U.S.

As a result, the Biden administration has proposed several additional funding mechanisms in the social safety net package, known as the Build Back Better Act, that is currently being negotiated by Congress.

Specifically, the legislation would set aside $9 billion for lead remediation grants to disadvantaged communities, $1 billion for rural water utilities to remove lead pipes, and $5 billion for mitigation efforts such as removing lead-based water fixtures in low-income households.

The Build Back Better Act would additionally provide $65 billion for public housing agencies and $5 billion for other federally-assisted housing organizations to improve housing quality, including by replacing lead pipes and service lines.

The status of that legislation, as well as what provisions will remain in the final version, remain in limbo. While Democratic leadership has pushed to pass the sweeping social bill before the new year, all 50 of the party’s members in the Senate will need to sign on, and moderate Sen. Joe Manchin (D-W.V.) has continued to withhold his support.

See what others are saying: (The New York Times) (Axios) (The Washington Post)

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