Long-hidden tax returns show Trump as terrible businessman and a cheat

Richard Nixon famously said, “People have got to know whether or not their president is a crook. Well, I’m not a crook.” That comment was not about theWatergate break-in, but rather, some funny business in his tax returns. Under public pressure, Nixon ultimately released those returns, revealing a major underpayment on his income taxes and creating a newnorm for at least partial tax disclosure that all his successors complied with.

Until President Donald Trump, that is.

And nowitmay be clearwhy. Bombshell reporting Sunday from the NewYork Times — based on the examination of thousands of personal and business tax records — suggests that Trump, like his disgraced predecessor, engaged in a lot of financial activity that also looks pretty crooked.

Trump reportedly paid only $750 in federal income taxes in 2016 and 2017, and none at all in 10 of the previous 15 years.

Trump claimed no tax liability for so many years because, according to the documents reviewed by the Times, he sustained mindbogglingly huge, chronic losses. The magnitude of these reported losses suggests he has been a thoroughly incompetent businessman or has been cheatingUncle Sam.

Most likely both. AlanGarten, an attorney for the Trump Organization, said the Times reportwas inaccurate, and that Trump has paid “tens ofmillions of dollars in personal taxes to the federal government,” a characterization that appears to conflate income tax payments with other kinds of taxes (such as those for Social Security). For his part, Trump has previously argued that shirking his tax obligations made him“smart.” He suggested that he merely took advantage of legal loopholes, the kind available to deep-pocketed Americans who can afford top-notch tax preparation advice. And as I’vewritten before, the real estate industry enjoys tons of loopholes and other opportunities for legally minimizing tax obligations, most notably through depreciation deductions. But per the Times, Trump’s “three European golf courses, theWashington hotel, Doral and Trump Corporation reported losing a total of $150.3 million from 2010 through 2018, without including depreciation as an expense.”

That is: They weremoney pits. Additionally, Times reporters Russ Buettner, Susanne Craig and MikeMcIntire include details of tax practices thatwere, at best, extraordinarily aggressive and, at worst, suggest possible fraud on a massive scale.

These include deducting lifestyle expenses, such as the cost of haircuts, as if they were business expenses. Or appearing to pay Ivanka Trump consulting fees on the same hotel deals that she helpedmanage as part of her job at her father’s business, an arrangement that may have been a way to transfer assets without paying gift taxes.

Or, writing off $2.2 million in property taxes as a business expense supposedly on an investment property that appears to instead be a vacation residence.

Now, it’s unclear whether voters will care, after all this time, that Trump has apparently paid less in taxes than the typical teacher, waitress, retail clerk or whoever else was usually cast as “moochers” and “takers.” Trump supporters seem willing to forgive almost anything; and taxes may seem too arcane for the general public to care about, especially if voters believe Trump’s spin that he practiced “smart” tax avoidance rather than illegal tax evasion.

Whatever the optics surrounding fairness, the reason the public should caremost, as I have long argued, involves conflicts of interest. These financial entanglements— whom the president is getting money from, owes money to and onwhat terms— are likely influencing executive-branch policy, presumably rigging it in favor of cronies and creditors and against the public welfare.

One might reasonably wonder why Trump, who appears to tweet, watch TV and golfmore than he exercises his duties as president, has ever wanted a second term. Well, in addition to his desire to finally build his border wall or continue dodging potential indictments, we now know that Trump has about a half-billion dollars’ worth of motivation to stay in office four more years.