Why did Trump file for bankruptcy

Donald Trump about to go bankrupt?

The New York Times got a glimpse of Trump's tax returns in recent years. He paid no or almost no income tax. The coup came specifically before the television duel on Tuesday

Now one can understand why Donald Trump stubbornly refused to publish his tax returns like all other US presidents for years. The New York Times certainly intended to land a coup shortly before the television duel and the presidential election and published information from Trump's tax returns, which the newspaper was able to see. How much she paid for it or how she received it is not known. Trump's problem: He has apparently paid little or no income tax for the past 18 years.

Joe Biden posted a video showing that teachers pay an average of over $ 7,000, firefighters over $ 5,000, and nurses over $ 10,000. And on his website, he points out that the average taxpayer paid over $ 10,000 more than the billionaire.

In the year before his presidency and in 2017 as president, he paid just $ 750 in income tax. He stated that he made more losses than profits. In 10 out of 15 years he has not given anything to the tax office. For comparison, George W. Bush and Barack Obama paid $ 100,000 or more in taxes during their presidencies. And then there is also the threat of a legal dispute with the tax office over the eligibility of a tax refund in the amount of 72.9 million US dollars due to a high economic loss. It can be assumed that it is the bankruptcy of the casinos in Atlantic City. Actually, he should have paid 95 million - and he should have paid tax on it. He had achieved it in two years of participating in The Apprentice.

According to the documents of the US tax office IRS, it is clear that Trump, who likes to portray himself as a winner, but also called himself "King of Debt", owns valuable real estate and hundreds of companies, but made huge losses and participated Debt is piled high. Personally, he is said to be responsible for over $ 400 million in loans due over the next several years. Deutsche Bank is one of the largest lenders. At least he can claim for himself, according to the NYT, that no unknown business interests in Russia arise from it. He was also able to finance his lifestyle through "business" expenses that reduced the tax burden: residential property, airplanes, or $ 70,000 for the hairdresser who styled him for his television appearances on The Apprentice.

Trump reacted to the publication as he is expected to do and described everything as nonsense of the fake news media, he paid a lot of taxes, but like everyone else, he was able to make write-offs. He has enormous assets and hardly any debts, and he is also the only president to date to have waived the presidential salary of more than 400,000 US dollars a year. It is quite possible that one could now think that this happened precisely for the reason that he could better hide his other income, since he should have reported the president's salary to the tax office.

His attorney, Alan Garten, wrote to the NYT that "most, if not all, of the facts appear to be inaccurate". Trump has "paid tens of millions of US dollars in personal taxes to the federal government" over the past decade. The NYT assumes that Garten is cheating and is not referring to Trump's income tax, but tax levies for his employees. In addition, taxes have been reduced through loans that are creditable against income tax.

"A dog is already"

One will have to see, as it is also received by his supporters, that Trump has made practically no contribution to the common good in recent years, while he continued to lower taxes for the rich, but the common taxpayer more than the alleged billionaire and president to the State must pay off. It is possible that he will also become less popular with his own kind. After all, the average tax rate for the richest 0.001 percent of taxpayers is 24 percent.

One could assume that Trump works with all sorts of tax avoidance tricks, i.e., with the help of his tax advisors, outsmarts the state as much as possible. That wouldn't exactly make him a role model for a decent citizen, but his self-cultivated reputation as a skilful and rascal entrepreneur according to the slogan "A dog is a scho!" strengthen. In certain circles, corruption or unclean business is often ignored if or for as long as the politician is otherwise successful.

But the tax findings could of course also indicate that the allegedly billion dollar construction mogul (in Russia one would speak of an oligarch) is a pseudo-giant, albeit not a nice one like Tur Tur, but more like the bigwig Pi Pa Po.

It is possible that he will retain his creditworthiness not because of his successes but because of his high debt - and because he became US President. The question would be whether he has to win re-election in order not to go bankrupt. Most debtors would probably hesitate to take action against the incumbent president, who ultimately has the justice, finance and economics ministries under his thumb.

He himself had claimed in 2015 that he had a fortune of 10 billion US dollars, Forbes still assumed it was 4 billion. The NYT had already shot up his self-portrayal as a self-made billionaire, Trump had already "earned" 200,000 US dollars a month as a three-year-old. His fortune, if it still exists, is based on inheritance without performance and tax tricks that his father was already well versed in. (Florian Rötzer)

Read comments (259 posts) https://heise.de/-4914498Reporting errorsPrinting Telepolis is a participant in the amazon.de affiliate program advertisement