Trump's Tax Returns Have Been Released.

[pbrower2a]

(10-02-2016, 10:10 AM)Warren Dew Wrote:

(10-02-2016, 07:41 AM)Mikebert Wrote:

(10-02-2016, 12:24 AM)taramarie Wrote:

(10-02-2016, 12:21 AM)Eric the Green Wrote: Tell us more; what did they say? Source?

Here. This is something I just saw. Do not know how legit it is. Trump's Tax Return

It appears to be from 1995.  We already know he paid no taxes then and had small income suggesting small net worth then.  He did release a revenue statement for a more recent year that suggested an income in the several hundred million range.  A Bloomberg analysis of this data suggested a net worth of about $3 billion.  If he is earning only $50 M on $3 B of assets he is a really shitty businessman. 

Assuming for the moment the tax return is real, the income is taxable income.  Any billionaire worth his salt knows how to keep the vast majority of his increase in capital gains from becoming taxable income - that's how Buffett manages an effective tax rate of less than a tenth of one percent.

Also notice that whenever a politician comes up with a "tax the rich" scheme, it's mostly about increasing tax rates on people who actually earn their money - millionaires and down.  They never talk about eliminating foundations and other schemes that billionaires use to keep their money from ever becoming 'income' for tax purposes in the first place.

It is impossible to avoid income taxes on wages and salaries. The IRS gets its taxes on wage and salary income largely through withholding. The rich have their ways of avoiding taxes, largely through keeping dividends low, being taxed only when the asset of increasing value is sold. A merger in which JKL Corporation takes over MNO corporation usually involves shares of MNO being bought with shares of JKL Corporation. No cash needs go directly to owners of MNO Corporation, so there may be no taxable exchange.

The tax laws favor Warren Buffett's buy-and-hold strategy, one of the more effective ways in which to grow asset values and delay payment of taxes.

In theory, corporate stock may be used to fund foundations. Supposedly the donors cannot derive benefit from the operation of those foundations.  But foundations may have management connected by family ties to the former ownership of assets endowed to the foundation. Another way to evade taxes is to inflate deductible expenses as an owner does expensive activities with huge elements of leisure or indulgence. In theory the owners might have limousines, hunting lodges, or other costly indulgences supplied by the company.