Washington: The methods and tricks that US President Donald Trump tried to avoid paying taxes are surprisingly common among leading real estate business and elite American wealthy. Nevertheless, Trump used these methods to their ultimate extent. This is what experts say after the New York Times reported on Sunday.
The newspaper report stated that in 2016 and 2017, Trump paid taxes of only US $ 750–750. Not only this, the news said that Trump did not pay even a magma tax for 11 years out of 18 years. Steve Trump Wemhoff, director of federal tax policy at the Institute on Taxation and Economic Policy, said, “The things Trump has done are done by purely wealthy business people and especially wealthy real estate developers.”
Despite this, Wemhoff said, Trump claims that “the special scope and loopholes available in the tax code sometimes just take them to a whole new level.” US tax law has long been lenient to big real estate businessmen. He gives them such opportunities that they can reduce their taxability significantly. In 2018, Trump’s tax reform of US $ 1.5 billion was carried out by Trump’s Republican colleagues.
This further diluted the tax laws against real estate dealers. The New York Times investigated Trump’s tax payments from 2000 to 2017 so his news did not record the effects of the 2018 law. Martin Sullivan, chief economist at Tax Analyst, says, “It has become much easier for real estate traders to avoid taxation now than they were five years ago.”
Even before the 2018 law in America, real estate businessmen could claim losses faster and more easily than other businesses and more easily avoid filing their profits with the Internal Revenue Service. . Even if they are behind in repaying the debt and if their debtors forgive their debts, they still have to pay lower tax penalty than other investors.
Trump had taken full advantage of these shortcomings in the tax system in the 1990s and early 2000s for failing to pay taxes for not running his Atlantic City casino. Experts say that too when it is not clear whether all their activities were legitimate or not. Weimhoff said, “Trump has done a lot of things that may be over the limits that the law allows.”
