homegossipWhy Donald Trump's Tax Scandal Is Considered One Of The Biggest Frauds Of All Time
Why Donald Trump's Tax Scandal Is Considered One Of The Biggest Frauds Of All Time
Published Thu Aug 01 2019 By
Donald Trump has a net worth of around $3.5 billion and is one of the most controversial figures in the world if not the most controversial figures in the world.
He has raised a lot of controversy in different topics like immigration policy, race, segregation, etc. however, his taxes are one of the most mysterious and questionable topics even when it comes to Donald Trump.
While the whole world waited for Trump to release his taxes he has yet to officially release his tax returns into the public domain. He has also promised multiple times to offer his tax returns but has never put words into action.
In fact, he once said that he would make his tax figures public when former POTUS Barack Obama releases his birth certificate. This debacle took place on April 2011 and Obama produced his birth certificate a week after Trump made the statement.
However, in true Trump fashion, he said that he would release his taxes at the appropriate time. Many people have raised the question of POTUS Trump’s accountability and have expressed a lot of aggression towards him for not releasing his tax returns.
Some sources have also speculated that He might be hiding some illegal affairs and the proof might be in his taxes. He has been accused of tax fraud by many sources and there is data to support this fact.
Donald Trump’s Tax Fraud
Gift Tax Fraud
Trump has been accused of many types of tax fraud, firstly and most commonly he is accused of gift tax fraud by the huge number of people. He took out several loans from his father at the time when his business was in trouble.
He has also said that he took out a “small loan of a $1 million” from his father to save his business but had no payment plans or interest rates making them gift money. According to US tax laws, if there is an exchange of more than $15,000 annually and $11.8 million in a lifetime, they have to pay 55% tax.
Some documents also revealed that he took about $5 million in 1979 alone. He did not pay taxes on these amounts and was able to dodge the IRS with the help of his father Fred Trump.
Security Tax Fraud & Loan Fraud
Donald Trump gave his father a 7.5% stake in one of his Manhattan condos in order to pay back his $11 million debt to his father, however, Donald bought the stake in the property back just two years later from his father for a measly $10,000.
This means that Trump and his father immensely undervalued the value of the property to not pay taxes.
He also once took a loan disguised as casino chips worth about $3.5 million from Trump Castle which is a casino owned by him in Atlantic City.
Then he was alleviated of paying either 55% ($1.9 million) or 5.5% ($175,000) and he was only charged with $65,000 in fines by the New Jersey Casino Control Commission for the act of fraud.
Estate Tax Fraud
Estate taxes have to be paid when someone inherits properties or monetary assets from their parent of kin. Another instance when Trump undervalued properties were from 1997 to 2004. During this time, he and his siblings were dividing the properties of Fred Trump to inherit after he passed away as Fred was in a fragile condition.
The real amount of the properties they inherited would’ve forced them to pay 50% in taxes but by grossly undervaluing the properties’ values they only paid 5% in estate taxes.
After facing more than $500 million in losses he was given a $915.7 million in tax exemption under section 172 of the Omnibus Budget Reconciliation Act of 1993. He sued the exemption to pay more than $915.7 million in taxes.
Tax Returns Leak
The New York Times published Trump’s tax returns from 1995 and pointed out fact that he had incurred a $916 million net operating loss. This caused further controversy for two reasons, firstly Trump could’ve received tax exemptions for at least 18 years as he had lost an incredible amount in taxes.
If he could’ve taken the 18-year tax exemption why didn’t he? Then after this, another point was raised when the White House claimed: "Despite this substantial income figure and tax paid, it is totally illegal to steal and publish tax returns."
After this leak even more controversy and the House Democrats have moved even aggressively to impeach the President.
In April of 2019 Democrats set a deadline for Trump to submit his tax returns, as per their deadline Trump had to submit his tax returns by 23 April 2019 however he did not submit the returns at the time.
Possibility Of Impeachment
After a lot of questionable tax returns and alleged tax frauds, the opposing parties are trying to impeach the POTUS.
In addition to this, his controversial time as the President that has included sex tape scandals, Russian involvement, sexual harassment allegations among others. All of this has caused a massive amount of people to go against the President.
His term will end officially on January 20, 2021, after he hands over the Presidency to another elected candidate.
Efforts to impeach him started before he took office and have lasted till mid-2019. A full-page ad by Larry Flynt on the Washington post supported the argument for Trump's impeachment.