How is it the a millionaire can pay hardly any type of income counting -- or none at every -- while many people, earning much less, fan more?
Just look in ~ the latest new York times report on president Donald Trump"s taxation returns. The report confirmed that trump card paid just $750 in revenue taxes each year in 2016 and also 2017 and also paid no earnings taxes at all in 10 the the ahead 15 years.
Trump has since denied the brand-new York time story and also claimed the he payment "a lot" in federal revenue taxes, yet he has actually not exit his tax returns.
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Meanwhile, in 2017, a typical nurse earning an mean of $70,000, paid $5,400 in federal revenue taxes, follow to american for taxes Fairness, a coalition of job groups and also organizations advocating for gradual tax reform.
Trump"s capacity to pay far less than the typical working American was mostly made possible because of how he structured his businesses, a huge array of taxes breaks that are available to actual estate developers, and incredibly big business losses and also charitable presents that he took together deductions to balance out his profits, follow to the time report.
Trump is no alone in taking benefit of these opportunities, yet he is certainly the outlier, said Steven M. Rosenthal, a tax lawyer and an elderly fellow at the Tax policy Center.
"Trump is one of two people the world"s worst businessman or a taxation cheat or possibly something the both," claimed Rosenthal.
While some wealthy taxation filers might see permission -- why can"t I carry out that, too? -- in the way Trump apparently ready his taxes, that is not the way the wealthiest americans typically approach their taxes, follow to taxes experts.
Wealthy world have money come take large bets, either in their investments or their businesses. When they go large and lose, they can take a capital loss or a net operation loss. And if the lose is big enough, they have the right to use the to greatly reduce or even wipe out their whole tax bill in a given year. Periodically taxpayers deserve to even carry unused quantities forward to future tax years.
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As the times reported, Trump was able to avoid paying taxes for years since of a massive net operating loss of $916 million in 1995 that was spread out out until 2005, thereby wiping out any kind of taxes that owed.
"Generally, you want to make enough money to increase your wealth and also pay your taxes," that said. "That"s the goal."
Todd Morgan, chairman of Bel Air invest Advisors, has been in high-net-worth wealth monitoring for 40 years and also said he"s never ever encountered a customer with a tax return prefer those the Times described Trump as filing.
Morgan claimed his firm functions to store clients rich for generations, not simply rich appropriate now. "We shot to minimization taxes because that our clients. Yet we"re not this successful