What Does Trump’s v Biden’s Tax Returns Reveal?
Living as an American in Australia, I have people constantly asking my opinion on Trump and Biden. Most times it is Trump. Much to their chagrin, I do not really answer their questions the way they expect and most don’t know that I have been doing tax returns for the last 46 years.
Most are expecting that I call Trump everything but a child of God and that I praise Biden for saving America. It is amazing how Trump lives in people’s heads….rent free!
Now the infamous tax return saga has come to an end. Another nothing burger as was the Russian hoax. There is a very interesting man that I see in my morning space down by the ocean almost every day. He is rather eccentric and covered in interesting tattoos.
He came to me today and asked me about Trump’s tax returns. My answer baffled his mind. He was like most people and only looked at one number. That number was what Trump actually paid in taxes each year.
To detail this, here are the numbers by year of what Trump paid in tax and charity:
Tax Charitable Contributions
2016 $750 $1.2 Million
2017 $750 $1.9 Million
2018 $1,000,000 $.5 Million
2019 $133,445 $.5 Million
These are approximate numbers as reported by Politico.
Being that the thousands of pages are not made public as of this writing, I have to form an opinion based on the reporting of people who have seen some or all of the returns. Obviously, there is nothing criminal (thus far until 2024 LOL) about them. This disclosure is meant to get people angered about what Trump actually paid.
Nobody is looking at 2015, 2018, or 2019. They are focused on the zero year and the $750 as that is what the main stream media is targeting! Looking at the numbers and reading the comments made, I see one main thread in his tax returns. He is a real estate entrepreneur. What does this mean?
It means boom and bust. Risk and reward. Gains and losses.
A person can speculate on property and be right in a big way and make a lot of money. Does that mean he pays tax on that? Not necessarily. The IRS tax code has many loopholes set up by the very people that are demonizing Trump for his taxes, including Mr. Biden.
You can also speculate on a property and be wrong in a big way. Does this mean anything? Yes. Once again, the IRS tax code allows certain losses to be carried back 5 years and carried forward for 20 years! These carrybacks offset taxable income and can, in some cases, reduce you tax liability to zero.
The losses can also offset income from other activities such as licensing and TV shows as Trump has obviously done.
I told this man that Trump’s taxes just point out that Trump is a businessman who takes risks. When he does well, he create jobs and adds back to the economy. Instead of sitting on his money, he churns it back into the economy and tries to do good things with it. Is he perfect? No. Neither am I nor you.
Now let’s have a look at Biden’s taxes. They are online so I can get a better picture of what Mr. Joe is about.
Tax Charitable Contributions
2015 $91,546 $6,920
2016 $91,037 $5,889
2017 $3,744,640 $1,013,762
2018 $1,528,208 $275,796
2019 $299,349 $14,700
2020 $157,414 $30,704
Biden’s actual taxes (except his S corps) are online. His income is basically from a job up until he left as VP. Then, as in many VP’s and President’s, he made a mint on speaking fees and book deals.
Not many deductions for this type of income being that it is mostly royalties.
What this says about Biden is that he was a not a business man that took risks. He added very little to the economy and, based on his charity vs income, is just sitting on it, or funneling it somewhere or to someone. (????)
The concept of what is your fair share is so subjective that it is impossible to calculate…fairly!
According to the IRS tax payer bill of rights,
The Right to Pay No More than the Correct Amount of Tax
Taxpayers have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.
So, with that being said, we will wait if the IRS comes back and says Trump did something wrong.
Until that time, you should maybe upset with yourself for not taking advantage of all the things that you can???
Maybe start a side hustle that gives you cash but has a paper loss. This will shelter some of your job income. Perfectly legal.
Maybe venture out from the job and take a risk.
Who am I to say? Some people are meant for jobs and they will pay tax accordingly.
Some people are meant for entrepreneurship and they will pay taxes accordingly.
OR, maybe be upset with the very people who are trying to shut down Donald Trump. After all, they made the tax laws, not Trump! (mic drop)