Tax Evasion

TAX EVASION

At the debate the other night Hillary launched her "October surprise" on Trump, suggesting that he refuses to show us his birth certificate oops I mean tax returns because he doesn't pay any taxes.

Then a copy of Trump's tax return for 1995 is mysteriously "leaked."    It showed that he claimed a nearly billion dollar loss and subsequently paid no taxes.    Trump says, "That makes me smart." Accountants say this is legal, since tax rules that favor wealthy filers would have allowed writing-off up to $50 million in taxable income per year for up to 18 years.

By stark contrast, a middle-income earner reporting a $30,000 loss would only be allowed to take a maximum of $3,000 as a write-off for that tax year.  And the carry forward loss is capped at $3k per year, even if there are further losses.

I am reminded of Leona Helmsley the hotel heiress who famously remarked "We don't pay taxes. Only the little people pay taxes." (She went to jail for tax evasion, sentenced to 16 years, but was able to buy her freedom after only 19 months.)

Mark Cuban thinks the"loss" was probably a quasi-legal tax shelter.  I think it was tax evasion.