Thursday, 13 December, 2018

Trump paid a 25% tax rate on 2005 earnings, leaked return reveals

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Stacy Diaz | 29 March, 2017, 01:56

The White House released the contents of the tax return in between Maddow's tweet and when she revealed it on her show, saying in a statement, "Despite this substantial income figure and tax paid, it is totally illegal to steal and publish tax returns".

Before Maddow even signed on, The White House had already denounced the anchor and the reports, but confirmed that Trump did indeed pay taxes in said obtained tax return.

The bulk of Trump's tax bill that year was due to the alternative minimum tax (AMT), a tax aimed at preventing high-income earners from paying minimal taxes. The Washington Post reported last year that Trump paid no federal income taxes for at least two years in the late 1970s. The journalist further claims that the tax returns in Maddow's custody were mailed to his home address incognito.

One possibility? "Anytime Donald went for a mortgage - especially if it was a personal mortgage of any sort", he said, "any type of loan would have required him to disclose his tax returns to the banks".

MSNBC claimed that it is protected under the First Amendment because it published material crucial to public interest. Still, the numbers in broad strokes illustrate why his tax plan would be a boon for the ultra-wealthy.

In 1969, then-treasury secretary Joseph W. Barr revealed that 155 Americans making $200,000 (worth about $1.5 million today) or more paid absolutely no income tax, thanks to completely legal deductions. Experts say an IRS audit does not bar someone from releasing the documents.

If you live in a high-tax place such as New Jersey or NY and deduct the state and local taxes you pay, that deduction will be counted toward the AMT. Most of his earnings came from business income, rental real estate, royalties and partnerships. Most any reasonable business person would do the same. Others have said it's just too complicated. The Congressional Budget Office estimated that repealing these two taxes would amount to a almost $275 billion tax cut over 10 years. In 2015 alone, the U.S. Treasury raked in $28.2 billion from the system. Although it has been a tradition for presidential candidates to release tax returns, the smart move by Trump was to not release his returns.

The White House said MSNBC's publication of the pages Tuesday night violated a federal law that prohibits the unauthorized release of tax returns.

It's first important to note that there are limitations: They don't show us details about his sources of income or expenditures like charity.

What Maddow and MSNBC actually managed to do was get part of a copy of Trump's 2005 tax return. Appearing with Ms. Maddow, he said he had received the forms "over the transom" and did not know who had sent them.

In fact, some have speculated that the documents reflect so well on Trump that he may have leaked them himself. If this was it, why wasn't MSNBC cutting into its programming, instead of running a countdown clock to Maddow's show?

According to Johnston, Trump's tax document had turned up in his mailbox.