Analysis explains how Trump manages to pay fewer taxes than Americans with a household income of $20K
Former President Donald Trump manages to pay a substantially low amount in taxes each year despite his ultra-wealthy status. Now, a new analysis is explaining how he manages to pay less in taxes than Americans with a household income of $20,000.
According to a new report co-authored by The New York Times' Russ Buettner, Susanne Craig, and Mike McIntire, the former president's tax payments were highlighted.
The writers revealed that he "paid $750 in federal income taxes the year he won the presidency. In his first year in the White House, he paid another $750."
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Internal Revenue Service (IRS) data indicates that the most common United States tax bracket, where workers earned an adjusted gross income (AGI) of $50,000 to $75,000, paid an average amount of $5,077 for the 2017 income tax year.
This suggests that Trump has also managed to pay a substantially lower amount than most of the country's taxpayers. So, how does Trump manage to make the system work in his favor?
The writers explained that he "paid no income taxes at all in 10 of the previous 15 years — largely because he reported losing much more money than he made."
They also wrote, "Most of Mr. Trump’s core enterprises — from his constellation of golf courses to his conservative-magnet hotel in Washington — report losing millions, if not tens of millions, of dollars year after year."
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But despite managing to avoid paying taxes, Trump has other financial problems looming that might prove to be problematic over the next couple years. "His revenue from 'The Apprentice' and from licensing deals is drying up, and several years ago he sold nearly all the stocks that now might have helped him plug holes in his struggling properties," they wrote.
"The tax audit looms," they wrote, adding, "And within the next four years, more than $300 million in loans — obligations for which he is personally responsible — will come due."
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