An Overview of Trump’s Tax Returns

On September 23rd, a New York Times report disclosed President Trump’s tax records. According to the report, Trump paid a mere $750 of the total federal income tax during his first and second year in office, while receiving a total tax refund of $72.9 million dollars. 

Trump is one of the wealthiest United States presidents, but he has little rectitude to willingly pay his taxes.  In the 18-year duration investigated by the report, Trump had not filed his taxes for eleven years and paid about $400 million less federal income tax than individuals of a similar tax rate. In contrast to his million-dollar bill tax avoidance, both former presidents George Bush and Barack Obama paid an average of $100,000 in federal tax during their respective terms. 

Moreover, the September 23rd report indicates that Trump only paid five years of taxes in the past 15 years. If calculated in a 20-year period, Trump has paid about $400 million less federal tax than those with similar assets.  

Currently, the IRS is focused on the $70.9 million tax refund received by Trump.  On the surface, Trump claimed his investment in the Atlantic City Casino failed and he lost all of his money, which is why he applied for a tax refund. However, the report reveals that Trump in fact made a 5% profit from his casino investment. Even though the IRS has imposed a census tax on Trump since 2011, the investigation has not yet been completed and the reason for the stagnation is unclear. 

Trump also has included personal living expenses in his corporate tax deduction. All of Trump’s businesses have classified about 20% of their income as the vaguely defined "consulting fees" for a refund and a tax cut. Since 2010, a total of $26 million has been compensated for similar consultancy fees. 

On top of his gain from the refund, Trump's participation in the 2016 general election indirectly promoted his personal brands and created more business opportunities.  The private club of his Floridian estate, Mar-a-Lago, has earned about $5 million more every year because of its growing membership. 

So far,  there are no legal indictments on Trump’s tax return. However, the House is requesting a case over the issue. Two separate inquiries, one civil and one criminal from New York have also been filed to further investigate the billion-dollar tax write off.

by ZHUORAN WEN