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Robert Reich reveals the real scandal of Donald Trump’s failure to pay his taxes

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According to the New York Times, Donald Trump declared a $916 million loss on his 1995 tax returns – which could have allowed him to legally avoid paying any federal income taxes for 18 years.

The loss stemmed from Trump’s investments in the early 1990s.

Ordinary investors in Trump’s business empire saw the value of their shares plunge to 17 cents from $35.50, bondholders got pennies on the dollar, and scores of contractors went unpaid.

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But Trump got a bonanza because the tax code allows “net operating losses” to cancel out taxable income in future years. And the bankruptcy code allows wealthy people to stiff the people they owe by reorganizing their debts under Chapter 11.

Trump didn’t do anything illegal. Real estate losses are notoriously easy to create. Trump bought buildings with borrowed money. He could then deduct interest paid on that debt. On top of that, he could take depreciation deductions, even when his real estate was appreciating in value.

Presto! Trump claimed almost a billion dollars of losses that would cancel his gigantic income gains for years to come.

Bankruptcy is also easy to utilize, if you’re wealthy enough to find a good bankruptcy lawyer who can use the bankruptcy code repeatedly to shelter your fortune and avoid paying your debts. Trump has used bankruptcy to stiff his creditors at least four times.

The real scandal here is that Trump and other hugely wealthy people can get away with this, and do so all the time. It’s just another way the system has been rigged – by rich people who buy off politicians to alter tax, bankruptcy, and other laws and regulations to their advantage, just like Donald Trump has done.

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“As a businessman and a very substantial donor to very important people, when you give, they do whatever the hell you want them to do,” Trump told The Wall Street Journal in July 2015. “As a businessman, I need that.”

Trump isn’t and was never a smart businessman. He was and is smart at gaming the system. There’s a difference.

 


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WATCH: John Oliver exposes Trump’s lies about vote-by-mail — and the Fox News ‘cult’ claiming the election is already ‘rigged’

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"Last Week Tonight" host John Oliver's main story Sunday refuted President Donald Trump's latest crusade against vote-by-mail. Trump announced on Twitter that the more people who vote in an election, the more Republicans tend to lose. So, he wants fewer people to have access to the ballot in November, even if people are too scared to go out during the coronavirus crisis.

Oliver called out Missouri Gov. Mike Parson (R-MO), who outright told people not to vote if they were too afraid to vote in the local elections next week.

"Well, hold on there," Oliver interjected. "Voting is a right. It has to be easy to understand and accessible to anyone."

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John Oliver rips Fox News’ Tucker Carlson for urging ‘order’ from people of color — but never demanding it of police

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John Oliver opened his Sunday show, shredding Fox News host Tucker Carlson for uring "order" among protesters, but refusing to urge "order" to police and "wannabe police" who can't stop killing people.

It's a lot, Oliver explained. "How these protests are a response to a legacy of police misconduct, both in Minneapolis and the nation at large and how that misconduct is, itself, built on a legacy of white supremacy that prioritizes the comfort of white Americans over the safety of people of color."

While some of it is complicated, Oliver conceded, most of it is "all too clear."

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Cars set on fire blocks from White House as DC protests turn violent

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The Washington, D.C. protests turned violent as the city approached the 11 p.m. curfew the mayor instituted Sunday afternoon.

The policy of D.C. police is that when they are attacked, they advance forward. So, when fireworks were fired, the line of officers began pushing the protesters back further from the White House. Behind the line of police officers also stand a line of National Guard troops that President Donald Trump has demanded stand watch in the city.

Lights that normally shine on the White House have also been turned off, reporters revealed.

https://twitter.com/markknoller/status/1267291138655956992

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