Let’s start with the obvious: while the reporters and newspaper are held harmless by the First Amendment to the Constitution, whoever leaked these tax returns is likely guilty of multiple felonies. 2/
The president has the same right to privacy in his tax returns that you or I have. I’m all for voluntary disclosure by presidents and candidates, but as an Enrolled Agent I can’t emphasize enough what a violation of trust this leak is. 3/
As to the information, I think the reporters are guilty of some of the “truthful hyperbole” Trump accuses himself of. They report normal, albeit large, tax deductions as extraordinary. 4/
Consulting fees, legal fees, bad debt deductions, depreciation, charitable contributions, capital losses, passive loss deductions, etc. are part and parcel of what tax returns look like for high income folks. There’s nothing unusual about finding them. 5/
What is unusual about Trump’s tax returns are the size and velocity of these items. I suspect this is a man who has gushers of income and gushers of legitimate expenses, well placed to offset over time. Nothing wrong with that. 6/
Here is where the story could do a better job explaining the distinction between tax evasion (which is illegal) and tax avoidance (reducing taxes via legal planning, something we all do). 7/
As an example of small time tax avoidance, imagine you have some appreciated Coca Cola stock. Rather than sell the shares and pay the capital gains tax, you donate them to your favorite charity and deduct the value as a charitable write off. 8/
The tax code is full of these legal, legitimate tax planning opportunities. In order to use them, you usually have to risk significant capital, be willing to endure years of losses, and generally be in the business of business. 9/
If you want the certainty of a nice, warm W-2 and a home mortgage and a 401(k) plan, you’re not in business. You work for those who put themselves out there to take risks. So tax avoidance is not available to you. Want them? Start a small business! 10/
Just be ready to pay a lot in taxes. You wouldn’t know it by reading this hatchet job of a story, but our tax system is extremely progressive. The more you earn, the more you pay in taxes. Trump did in years where he wasn’t recovering business losses. 11/ nytimes.com/interactive/20…
Whether Trump’s tax planning (and those of his advisors) meets tax law obligations is a matter between him and the IRS. But the items themselves are perfectly legitimate. And we have no insight into the discreet details of the claims. 12/
This story is nothing more than the “Orange Man Bad” version of “gotcha” pieces liberal journalists routinely run about how big companies don’t pay taxes. The stories invariably cherry pick years and items favorable to the story’s bias. 13/ nytimes.com/interactive/20…
I strongly suspect that only blue checkmark types and liberal activists will care about this story. Tax experts see a “tie goes to the runner” aggressiveness, but not much more than that. Rich guy wheels and deals. Film at 11. Fin/ nytimes.com/interactive/20…
@JoeBiden The top personal income tax rate is raised from 37 percent to 39.6 percent. This affects all taxable income north of about $550,000 for singles and about $650,000 for married couples. /2
@JoeBiden The IRS would get an annual report on the money deposited and withdrawn from every bank account in America. The IRS would literally be snooping on all your banking activity all the time. /3
@JoeBiden In 2017 and 2018, Joe and Jill Biden ran $13 million of profits through a Subchapter-S corporation, allowing them to avoid payment of $500,000 in Social Security and Medicare tax. Originally reported by @RichardRubinDC 2/ washingtonexaminer.com/opinion/joe-bi…
@JoeBiden@RichardRubinDC Unlike sole proprietorships, general partnerships, or LLCs, profits from Subchapter-S corporations are subject to income tax, but are not subject to Social Security/Medicare payroll tax. 3/ washingtonexaminer.com/opinion/joe-bi…
@nytimes@realDonaldTrump "But the [SCOTUS] has repeatedly ruled that the [1A] allows the press to publish newsworthy information that was legally obtained by reporters even when those in power fight to keep it hidden. That powerful principle of the [1A] applies here." 2/ nytimes.com/2020/09/27/us/…
However, Title 26, Section 7213(a)(2) of the US code (related to illegal tax return disclosure) says, "It shall be unlawful for any person to whom any return or return information (as defined in section 6103(b)) is disclosed in a manner unauthorized by this title...
@joeantos People don't choose to work or not to work based on accrued quarters of Social Security eligibility. I suspect the number of people in the world who even understand how this works don't hit triple figures. 2/
@joeantos Furthermore, there is no reason why Social Security's benefits formula needs a payroll tax. Provided that the SSA has employment history, they can calculate wages and eligible quarters. 3/
@dcexaminer The gig economy and freelance jobs have radically transformed the ways we travel, we eat, and we do routine household chores. It's made our lives better in many ways, and created flexible work options for millions. 2/ washingtonexaminer.com/opinion/why-ca…
The freelance economy adds $1.4 trillion every year to our economic output. It provides income to 60 million workers, many of whom are first generation immigrants. Nearly half of millenials do at least some self-employed work. 3/ washingtonexaminer.com/opinion/why-ca…
@kpomerleau The most important point made by @kpomerleau is that "meals and entertainment can be an ordinary and necessary business expense." Given that, the proper response is regulating this expense, not limiting it arbitrarily or repealing it. 2/
@kpomerleau Business owners ought to be able to deduct ordinary and necessary business expenses (a term of art from the tax code) while protecting the tax system against purely personal expenses. So what to do in the case of business meals? 3/