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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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Democrats Ask for Investigation into GOP Members Aiding Rioters

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  • More than 30 House Democrats signed a letter Wednesday demanding that security officials look into “suspicious behavior and access given to visitors” at the Capitol the day before last week’s insurrection.
  • The lawmakers claimed they “witnessed an extremely high number of outside groups” visiting, including guests who “appeared to be associated with the rally at the White House the following day.”
  • The letter comes one day after Rep. Mikie Sherrill (D-NJ) accused her Republican colleagues of bringing rioters into the Capitol the day before for “reconnaissance.” 
  • Notably, neither the letter nor Sherill herself directly named any members, and these claims have not yet been verified.

Demands for Investigation

Congressional Democrats are demanding an investigation into whether Republican representatives aided the Capitol rioters who lead last Wednesday’s insurrection.

In a letter signed by 31 members Wednesday, lawmakers asked the acting House and Senate Sergeants at Arms to look into “suspicious behavior and access given to visitors” the day right before the attack. 

In that letter, the Democrats say that they as well as some of their staffers “witnessed an extremely high number of outside groups” visiting the Capitol.

They pointed out that was unusual because the building has restricted public access since March as part of pandemic protocols. Since then, tourists have only been allowed to enter the Capitol if they were brought in by a member of Congress.

The members found the tours “so concerning” that they reported them to the Sergeant at Arms the same day.

“The visitors encountered by some of the Members of Congress on this letter appeared to be associated with the rally at the White House the following day,” the letter continued. “Members of the group that attacked the Capitol seemed to have an unusually detailed knowledge of the layout of the Capitol Complex.” 

The demands come after Rep. Mikie Sherrill (R-NJ) claimed during a Facebook livestream Tuesday that she saw Republican representatives bringing now-identified rioters into the Capitol the day before the riots for “reconnaissance.” Sherrill also alleged that some of her GOP colleagues “abetted” Trump and “incited this violent crowd.”

Members Under Fire

Neither the letter nor Sherill have directly named any members, and none of these claims have yet been verified. However, over the last few days, a number of Republicans have been condemned for their perceived involvement in inciting the rioters.

In a now-deleted video, right-wing conspiracy theorist and “Stop the Steal” organizer Ali Alexander claimed he had planned the rally that took place before the riot with the help of three House Republicans: Paul Gosar (Az.), Andy Biggs (Az.), and Mo Brooks (Al.). All three men voted to undermine the will of the American people and throw out the electoral votes in Arizona following the insurrection. 

Biggs and Brooks have both denied that they have any involvement, but Gosar, who tagged Alexander in a tweet he posted just hours before the attack, has not responded to any requests for comment from several outlets.

“Biden should concede,” Gosar wrote. “I want his concession on my desk tomorrow morning. Don’t make me come over there. #StopTheSteaI2021”

While Brooks has denied any involvement in planning the rally, his remarks to the would-be domestic terrorists at the event have sparked widespread condemnation.

“Today is the day that American patriots start taking down names and kicking ass,” he told the crowd. “Are you willing to do what it takes to fight for America?”

Some House Democrats introduced resolutions to censure Brooks for his comments. Other members have also been pushing to invoke Section 3 of the 14th Amendment, a relic of the post-Civil War era which disqualifies people who “have engaged in insurrection or rebellion” against the U.S. from holding public office. 

Rep. Cori Bush (D-Mo.) has also received 47 co-sponsored on her proposed resolution that would start investigations for “removal of the members who attempted to overturn the results of the election and incited a white supremacist attempted coup.”

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

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House Impeaches Trump By Largest Bipartisan Margin in History

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  • The House voted to impeach President Donald Trump on Wednesday for “inciting an insurrection,” making him the first-ever president to be impeached twice.
  • Ten Republicans broke party ranks to vote in favor of impeachment, which means this is the most bipartisan impeachment in U.S. history.
  • Ahead of the vote, sources close to Senate Leader Mitch McConnell told reporters he believes Trump committed impeachable offenses and that he was pleased Democrats were moving forward with a vote because it will make it easier to “purge” Trump from the party.
  • McConnel later said he has not yet decided whether he will vote to convict Trump. Still, he has refused to convene the Senate before Jan. 19, meaning that as of now, there is little chance that the Senate will conduct a trial and oust Trump before his term ends.

House Debates Impeachment

The U.S. House of Representatives voted 232 to 197 to impeach President Donald Trump on Wednesday for “inciting an insurrection,” making him the first-ever president to be impeached twice.

All Democrats voted in favor of the single article. They were also joined by 10 Republicans, which means this is the most bipartisan impeachment in U.S. history.

The decision was debated on the floor after Vice President Pence rejected Democrats’ calls to invoke the 25th amendment and remove Trump from office.

Most notable among the Republican members who voted to impeach was Liz Cheney (R-WY), the number three House Republican who announced her decision Tuesday night.

“There has never been a greater betrayal by a president of the United States of his office and his oath to the Constitution,” she said in a statement.

Questionable Path in Senate

No Republican Senators have publicly said they support removing Trump from office.

On Tuesday, The New York Times reported that sources close to Senate Leader Mitch McConnell (R-KY) said he “has told associates that he believes President Trump committed impeachable offenses and that he is pleased that Democrats are moving to impeach him, believing that it will make it easier to purge him from the party.”

Sources separately told Axios that “there’s a better than 50-50 chance” that McConnell would vote to convict Trump.

McConnell responded to the reports earlier on Wednesday but did not outright dispute many of the claims.

“While the press has been full of speculation, I have not made a final decision on how I will vote and I intend to listen to the legal arguments when they are presented to the Senate,” he said.

As for whether or not other members of the GOP would follow suit, a top Republican close to McConnell also told Axios that “Senate institutional loyalists are fomenting a counterrevolution” to Trump. 

Additionally, McConnell’s advisers have said that he has “privately speculated that a dozen Republican senators — and possibly more — could ultimately vote to convict.” Notably, it would most likely require 17 Republicans to join Democrats in order for Trump to be found guilty.

In regards to a timeline, the Senate is in recess and not set to reconvene until Jan. 19, the day before Joe Biden’s inauguration. McConnell has rejected calls to ask that members return before then, meaning that as of right now there is very little chance that the Senate will conduct a trial and oust Trump before he leaves office.

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

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Multiple Capitol Police Officers Have Been Suspended, Other Officers Now Under Investigation

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  • Acting Capitol Police Chief Yogananda Pittman confirmed Monday that several U.S. Capitol police officers were suspended following Wednesday’s attack on the Capitol complex.
  • According to Rep. Tim Ryan (D-Oh.), one suspended officer wore a “Make America Great Again” hat during the incident while another took a selfie with insurrectionists.
  • An additional 10 to 15 Capitol officers are under investigation for their actions related to the attack. 

Capitol Officers Suspended

Several U.S. Capitol police officers have been suspended following the deadly Jan. 6 attack on the Capitol complex, according to acting Capitol Police Chief Yogananda Pittman.

Hours before Pittman’s announcement Monday, Rep. Tim Ryan (D-Oh.) said two officers were suspended for their actions during the insurrection attempt. That includes one officer who was seen donning a “Make American Great Again” hat and another who allegedly “started directing people around.” It also includes an officer who allegedly took a selfie with insurrectionists outside of the Capitol. 

It is unclear if that is a different officer than the one who appears to take a selfie with an insurrectionist in a viral video from inside the Capitol. 

In addition to the suspensions, Ryan said about 10 to 15 other Capitol officers are under investigation for suspected involvement with or inappropriate support for the insurrection attempt. 

In one of eight separate reported investigations — detailed by an anonymous congressional aide who spoke to The Washington Post — some officers were found to have allegedly posted messages showing support for the rally that later led to the attack. 

Notably, that included perpetuating President Donald Trump’s baseless claims that the election was rigged against him. According to The Post, the Secret Service also indicated that one officer posted a message to Facebook in which she accused lawmakers of “committing treason on live tv” as they begin proceedings to certify President-elect Joe Biden’s win.

In another case, investigators uncovered “inappropriate” images of President-elect Joe Biden on a Capitol officer’s social media. The exact nature of those photos is still unclear.

Sen. Cassidy Releases Images of Suspect in Sicknick Death

Meanwhile, Tuesday morning, Sen. Bill Cassidy (R-La.) released images of a man who Capitol police are looking for in connection to the death of Officer Brian Sicknick. Sicknick died last week from injuries he sustained during the attack. 

In one photo, the man’s bearded face is clearly visible. In the other, he can be seen wielding a red object. Cassidy has urged anyone who recognizes the man to call the FBI’s hotline.

See what others are saying: (The Washington Post) (Reuters) (NBC Washington)

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