Trump a genius for tax loophole, say his allies
Donald Trump was labelled a “genius” by his Republican backers yesterday after suggestions he used a loophole to legally avoid paying federal taxes for nearly 20 years.
Mr Trump declared massive losses in his 1995 tax return, according to filings obtained by The New York Times and verified by the billionaire’s former accountant.
The $916 million (£706 million) loss came from an array of failed ventures in the early 1990s.
DONALD TRUMP was labelled a “genius” by his Republican backers yesterday after suggestions that he used a loophole to legally avoid paying federal taxes for nearly 20 years.
Mr Trump declared massive losses in his 1995 tax return, according to filings obtained by the New York Times and verified by the billionaire’s former accountant. The $916 million (£706 million) loss came from an array of failed ventures in the early 1990s and may have enabled him to avoid paying tax. Under the rules at the time, offsetting just over $50 million a year would have enabled the write-offs to last 18 years.
The newspaper received three pages of the tax returns, posted to one of its journalists anonymously.
Robby Mook, campaign manager for Hillary Clinton, described the revelation as a “bombshell”. “This report reveals the colossal nature of Donald Trump’s past business failures and just how long he may have avoided paying any federal income taxes,” he said.
Mr Trump did not deny that the documents were real – and tweeted that his knowledge of tax laws made him “the only one who can fix them”. The businessman has been repeatedly challenged by Mrs Clinton, the Democrat presidential nominee, to release his tax returns. He has declined to do so, saying that his affairs are being audited. Being audited does not prevent you releasing your tax returns.
Mr Trump has in the past been critical of people for avoiding tax. “HALF of Americans don’t pay income tax despite crippling govt debt,” he tweeted in February 2012. Three months later, he tweeted: “Facebook billionaire gives up his US citizenship in order to save taxes. I guess 3.8 billion isn’t enough.”
Earlier this year he said the tax returns of 2012 Republican nominee Mitt Romney “made him look like a fool”.
When challenged in the first presidential debate by Mrs Clinton over his boast that he had paid no federal income tax in the late 1970s, Mr Trump retorted: “That makes me smart.”
As the revelations were published, late on Saturday night, Mr Trump was on stage in Pennsylvania giving a speech. His campaign team took to American TV yesterday to insist his tax avoidance was a sign of brilliance.
“There’s no one who’s shown more genius in their way to manoeuvre around the tax code,” said Chris Christie, governor of New Jersey.
Rudy Giuliani, former mayor of New York and another key Trump ally, agreed. “He’s a genius. This is a perfectly legal application of the tax code.”
“Do you know how much tax I wish I paid?” asked David Clarke, sheriff of Milwaukee and an ardent Trump supporter. “Zero. That’s what all Americans should be paying: zero.”
Mr Trump’s spokesman declined to comment on the documents, nor confirm the $916 million loss.
Nigel Farage is to be a guest of Donald Trump at next Sunday’s presidential debate, as the former Ukip leader takes an increasingly prominent role in the Republican’s campaign. The former Ukip leader has denied that he is formally coaching Mr Trump.
Mr Farage was introduced on CNN as “the only world leader who supports Mr Trump”. He has said that Mr Trump, who is almost neck-and-neck with Mrs Clinton in the polls, could deliver a “Brexit-style” shock.