Trump’s Income Sharply Dropped During His Presidency – Tax Returns Show
Earlier this week, Trump’s income and tax returns were released. In the course of four years, his income dropped sharply. He reported a negative $12.9 million in 2018. The report outlined that in some years, his net income was less than his net taxes.
Democrats fought for years to get a look at the records. They warned that releasing them could cause political weaponization. But in the end, they voted to make them public.
The report was released by a nonpartisan office of economists known as the Joint Committee on Taxation. It examined Trump’s tax returns for the years 2015 through 2020. While the committee was not authorized to investigate the president, it found several areas of interest.
For example, the committee raised questions about carryover losses. Also, it questioned whether some of the deductions Trump claimed were legitimate.
Some deductions were designed to limit the amount of tax that was owed. Aside from his personal income, Mr. Trump and his wife also paid a net tax of $2,300,000 during the period. These deductions included payments from Goldman Sachs, Microsoft, and law firm Kirkland & Ellis.
The report raises some concerns about the IRS’s system for conducting audits. Specifically, the committee said that the agency was not vigorously examining filings.
Although the IRS does not compel presidents to release their tax returns, it has a policy of automatically auditing each president. This policy was implemented in the Nixon administration to help assure the public that the tax system is fair.