Thursday, December 22, 2022

President Trump's Tax Returns - Good For Him

Socialist Fascists (AKA Democrats), Fake News and RINOS have pursued President Trump's tax returns for years.  Finally, by court order they have secured and released six years of Trump's tax returns.  And, as predicted in most of those years, Trump paid little or no federal income taxes.  Good for him.  Trump's investment advisors and CPA's used the tax code written by Congress to legally avoid taxes just like everybody else that has a competent accountant preparing their tax returns. 

What most people that work for a paycheck do not understand is that wealthy people minimize their W-2 paycheck earnings as much as possible because those earnings are taxed at the highest personal income tax rates.  Instead, they live off investment earnings usually taxed at Capital Gains tax rates that are much lower.  And, with the advice of their investment advisors and CPA's, they sell off their loser investments each year to take a Capital Loss, which under IRS code can be carried forward to defer future Capital Gains taxes when selling assets for a profit.  No doubt, Donald Trump did just that along with charitable deductions to eliminate taxes owed.  

Further, many of Donald Trump's assets are held in separate Limited Liability Corporations (LLC's).  So each hotel or golf club is a seperate company that files local, state and federal taxes probably in the millions of dollars.  Those taxes would not show up on Trump's personal tax returns except for any K-1 income that may be distributed to them.  They don't have to distribute income.  They can just leave earnings in the LLC if they choose to avoid any personal income taxes due.  This would just increase the basis in the property and impact Capital Gains owed when the property is sold.  

All of this is very complex and completely in accordance with the IRS tax code approved by Congress.  Naturally, we will shortly hear from the morons in the Socialist Fascist (AKA Democrat) Party, Fake News and RINOS that Donald Trump pays no income taxes.  Of course, it is all BS.  Donald Trump uses the tax code to his advantage just like everybody else.  Anyone that does not use the tax code to legally avoid taxes is just plain stupid.  Since we will soon hear all the negative lies coming out of the Deep State Swamp, it is easy to understand why Trump never willingly shared his tax returns.  Trump knew very well how the information would be used to smear him.  So what's new.  

No comments:

Post a Comment