On taxes and politics:
Remember, Obama doesn't have his money in a blind trust. Instead, his money is (almost) all in US Treasury bonds.
When last I read the Obama taxes, they had an income of more than a million dollars. This is more than double what the Presidency pays. The bulk of the rest was from the books.
On a 1040, the IRS asks what to do with any money they owe you. For most of us, this is simple: give it to me. Due to paying too much on estimate quarterly taxes, the IRS owed them tens of thousands of dollars.
When asked what to do with it, the Obamas did something few of us do: told the IRS to go ahead and hold onto it for another year. This is a zero-interest loan to the government.
Obama pays taxes, invests in America, and gives the Treasury no-interest loans.
Deducing a business expense doesn't make you smart. It means you hired decent tax lawyers. Paying extra doesn't make you smart, either -- but it sure makes you sound like a patriot.
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I guess I just honestly don't understand how business taxes work. I thought I read that Trump could have avoided paying taxes because of his billions of dollars of reported loss. I assumed that meant that he still did pay taxes anyway. So I think I don't understand why people are saying he gamed the system. What am I missing?
ReplyDeleteRocio Goodey I guess there are ways to artificially have losses.
ReplyDeleteRocio Goodey
ReplyDeleteWe don't know how much he paid in federal taxes. Full stop.
What we do know is he reported a loss of about a billion dollars in 1995. We also know that real estate tax means he could carry that loss over for 20 years, deducing 50 million a year.
Which means if his profits was 50 million or less for those years, then his tax liability at the federal level was very probably zero.
It is more complicated than this, but I am not a lawyer.
William Nichols thank you, that's little more clear.
ReplyDelete