Trump taxes leaked
White House says release of records ‘totally illegal,’ but confirms he paid $38M in federal taxes in 2005
President Donald Trump paid $38 million in federal taxes in 2005 on income of $153 million and reported a $105 million write-down in business losses, according to a copy of his tax return first revealed Tuesday night on MSNBC.
Trump paid an effective tax rate of 25 percent and saved millions of dollars in additional taxes by claiming the losses, according to the document, the first two pages of which were obtained by Pulitzer Prize-winning journalist David Cay Johnston and first shared on “The Rachel Maddow Show.”
The return shows that Trump paid $36.5 million in income tax, of which about $31 million was in the form of an “alternative minimum tax,” a supplemental tax designed to cut down on filers with excessive deductions. He also paid about $1.5 million in Medicare and Social Security taxes.
The document offers a rare snapshot of Trump’s personal finances, considering he has refused to disclose his tax returns to the public. The White House issued a statement chastising MSNBC for reporting on Trump’s taxes — “totally illegal,” read the statement — but also confirming top-line numbers from the return and defending Trump.
Trump’s taxes were a major flash point in last year’s campaign and continue to be a subject of intense scrutiny from Democrats and others who believe they would show whether he has financial relationships with any Russian entities.
The newly revealed pages from his 2005 return do not detail his financial ties, but they do seem to disprove the theory that some Democrats advanced in last year’s campaign that Trump avoided paying any federal income taxes during that period.
In their first general-election debate, Democratic nominee Hillary Clinton speculated about Trump, “maybe he doesn’t want the American people — all of you watching tonight — to know that he’s paid nothing in federal taxes.” At that, Trump quipped, “That makes me smart.”
Donald Trump Jr., the president’s oldest son, tweeted, “Thank you Rachel Maddow for proving to your #Trump hating followers how successful @realDonaldTrump is & that he paid $40mm in taxes! #Taxes”
Last fall, the New York Times revealed that Trump reported a massive $916 million loss in 1995, which he could have carried over to allow him to offset taxable income and avoid paying income taxes for up to 18 years. Though Trump was able to use those net losses as a deduction in 2005, the returns show, they did not zero out his tax obligation altogether.
Trump repeatedly has refused to release his income tax returns — breaking with four decades of tradition for presidential nominees — claiming that he has been under audit and that his lawyers have counseled him not to release them.