By Kenneth Tiven in Washington DC

Two days before the first presidential debate of 2020, The New York Times dropped a bombshell story about how US President Donald Trump paid only token tax amounts on hundreds of millions of US dollars flowing into the Trump Organization and its subsidiaries.

How he did it suggests several things:

• He’s a bad businessman knowingly losing more money than earned,
• He’s a wild spender with very aggressive accountants,
• Or perhaps for some 30 years he has had friends within the Internal Revenue Service (IRS) ignoring the warning signals that his lack profit would provide.

Tax abnormalities exist in every nation but these revelations shatter any American illusions that all taxpayers are honest and so are government tax officials.

Trump’s refusal to release his tax returns as presidential candidates have done since 1972 gave rise to speculation that his claims of being “really rich” might have even exaggerated. He has fought efforts by Congress and others to get his actual tax filings all the way to the Supreme Court, which ruled that state authorities could file suit to see them, which is happening in New York State.

In America you pay federal income tax in the year after it was earned. Filing for 2016 and 2017 President Trump paid just $750 each year in federal tax. He does give away a percentage of his federal salary so that helps reduce his tax liability, but he remains the sole owner or largest shareholder of parts of the Trump Company. He paid no taxes at all in several previous years, largely because his business empire has consistently reported losing more money than it made, according to the Times reports. Business losses that exceed deductible limits for a year can be “carried foreword” to reduce taxes in succeeding years. (This amounts to an internal Ponzi scheme)

Financial documents reveal the business empire he brags about has struggled, with premium properties like the president’s Doral resort and his Washington D.C. hotel steadily losing money. In the next five years Trump is personally liable for around  $421 million in loans and other debts.

Additionally, the Times reports that Trump is still contesting an IRS claim that a $72.9 million tax refund granted in 2010 was illegal. If Trump loses that fight, with delinquent charges his repayment would be more than $100 million.

All of this is about federal (national) taxes on income from salary and businesses. States also charge taxes on these amounts. At a news briefing Sunday at the White House Trump called the story “fake news,” as he does with anything he disagrees with but offered no specific explanation. Once again he promised to release his tax returns when an IRS audit is finished, which the IRS has said repeatedly does not stop him. 

President Trump still owns his business, though he says he has given day-to-day control to his eldest sons, Donald Jr. and Eric. A company lawyer labelled the paper’s claim riddled with gross inaccuracies.” After the Times story was published, several congressional Democrats said that it confirmed Congress—and the public—should have a complete view of Trump’s business entanglements.

“As the leader of Congress’s fight to obtain Donald Trump tax returns, this blockbuster report confirms some of our worst fears.” said Rep. Bill Pascrell Jr. (D-N.J.) “Trump’s titanic financial losses confirm that while he campaigned as a so-called brilliant financial wizard, Trump is a cheat, a fraud and perhaps the worst businessman in the world.“

Trump had made his business experience a critical element of his 2016 campaign, using his large business jet as a symbol of his acumen. This tax issue and his seemingly haphazard approach to managing his presidential responsibilities make a “business genius” claim less than credible. The feeble stimulus payment to low income taxpayers from the US government, compared to other comparable nations, becomes a bigger campaign issue in light of these revelations.

The Times has an immense assortment of financial documents it says it was given by sources it will not reveal. The tax returns could push that issue back to the forefront of the presidential campaign at a time when the coronavirus pandemic, the economy and judicial appointments have so far dominated.

Trump’s total net worth is not stated in the documents. This, too, is a problematic area because he has reputation for overvaluing his properties when he wants to sell and undervaluing them when it comes to property tax assessments. The paper said they also did not show any previously unknown business connections to Russia.

But the documents indicate the future president made a windfall from his television show “The Apprentice.” That show brought Trump $427 million, the Times said, but Trump used the cash to buy resorts and golf clubs, all of which have been money losers. For now, the US taxpayers are helping out because Trump visited his own properties more than 270 times and the government paid hotel and food bills among other costs amounting to something above $1,000,000.

—The writer has worked in senior positions at The Washington Post, NBC, ABC and CNN and also consults for several Indian channels

Although the second night of the Republican National Convention was calmer, with mild attack on the media, Democrats, and what Republicans desperately label as leftist radicals, Melania Trump’s speech stood out for several reasons  

By Kenneth Tiven in USA

Reporter note:  In the interest of honestly dealing with errors and omissions here are thoughts from Daniel Dale, a reputable American fact checker regarding Night 1 of the Republican Political Convention before we deal with Night 2’s story. Dale states, “That was a parade of dishonesty. We had false claims, we had misleading claims, and we had major strategic omissions. We had ‘up is down’ revisionist history on the corona virus and other matters. People say as you know, ‘they all lie. What about the Democrats?’ Look, I sat here in the same spot listening closely to the Democratic Convention. It just was not like this. I think it’s important for us to note when things are not equal and their four nights combined didn’t have the quantity of dishonesty of tonight’s one Republican night. We need to say when this isn’t the same and this isn’t the same.” Readers need to understand that these political gatherings are large theatrical facades that often play fast and lose with objectivity.

With that in mind, this second night was a calmer, less petulant repeat of the attack on the media, Democrats, and what Republicans desperately label as leftist radicals. Their central focus is claiming a terrible fate awaits the nation if Democratic nominee Joe Biden wins in November. Not at all coincidental, the Democrats claim a Trump second term will end democracy in America. 

Melania Trump’s speech stood out for several reasons. The president’s wife used the Rose Garden she just replanted. She acknowledged the death of thousands in the coronavirus pandemic and the impact on so many American families including suicides, and drug addiction. This is the only clear reference to 1,80,000 deaths from anyone in two days. An audience with some social distancing and no apparent masks applauded at the end of her speech. However, she criticised mainstream media as well as “how mean and manipulative social media can be” the cruelty of social media, apparently without considering her husband’s use of Twitter to abuse and attack people he does not like. In her smoothly delivered talk, she acknowledged an America that exists outside of simply praising the president.

The extensive use of the White House as the setting for the convention comingles politics and governance breaking traditions and probably federal law. This included an awkward naturalization ceremony and a pardon issued to a felon now leading a movement to help prisoners re-enter society.

Tonight the Trump children on stage were Eric and Tiffany, both of whom heaped praise on their father, but in a tone less arrogant and shrill than that the previous night from Donald Trump Jr. and his girlfriend Kimberly Guilfoyle. Tiffany seemed to speak directly to her dad in saying the media is keeping people “mentally enslaved” to the ideas they deem correct.

Eric’s refrain was “every day my father fights for the people of this country.” When he claimed his father had “defeated Communism and defeated Fascism,” It was unclear a mystery what he meant. The fact checking alarm went off more clearly when he said, “My father on the other hand, delivered the largest tax cuts in American history,” repeating, a claim made dozens of times by the President. It is not. The 1981 Reagan tax cut is the largest as a percentage of the economy and by its reduction to federal revenue. The 2012 Obama cut amounted to the largest cut in inflation-adjusted dollars: $321 billion a year.

The most deliberate attack on Joe Biden came from Florida’s former Attorney General Pam Biondi. Her style was that of a prosecutor, but she is best known for withdrawing Florida’s participation in a lawsuit against Trump University for fraud—right after getting a $25,000 campaign donation from a Trump charity.

In this second night, there seemed to be fewer Biden attacks—except for the Biondi assertions—but more specific attacks on the media for its treatment of Trump and his various associates who have been convicted of breaking the law.

Never mentioned were former Republican Presidents—George H.W.  Bush or his son, George Bush, or Richard Nixon—while others were often cited, especially Abraham Lincoln and Ronald Reagan.

Context is an important aspect of understanding the roots of false or misleading political statements:

1. When Eric Trump says that Black unemployment was at historic lows before the pandemic hit, it avoids the fact that Black unemployment remains twice what white unemployment is.
2. Few people will recall that Trump has falsely claimed multiple times, that the Lobster fishing industry declined under Obama. Trump’s own trade and tariff war that put it into trouble. In June, President Trump ordered the Agriculture Department to provide financial assistance to the lobster industry to offset the effects of China’s retaliatory tariffs that pushed lobster exports to China down by nearly 50%. With this context, the Maine Lobsterman who appeared to praise Trump seemed a bit bizarre, but it’s just the kind of fishy story politicians love to tell.
3.  Myron Lizner, vice president of the Navajo Nation, applauded Trump putting $8 billion into pandemic relief for hard hit Native American tribes. With context it becomes clear that the original Republican legislation did not include any funding for tribes. A significant portion of the aid is also tied up in court as tribes questioned how the administration chose to divide the funds among various tribes. A federal watchdog is investigating whether a top Interior Department official violated ethics rules when she helped decide how to divide the funds.

Secretary of State Mike Pompeo, travelling abroad, delivered his support from the rooftop of the King David Hotel in Jerusalem with all the enthusiasm and intensity of a man who did not want to be up at 05:00 local time. He disparaged Iran and China, praised Trump for killing ISIS leaders, claimed Trump averted nuclear disaster with North Korea and applauded the Israel and the United Arab Emirates for agreeing to establish diplomatic relations, which he called a Middle East Peace.

“It is highly unusual, and likely unprecedented, for a sitting Secretary of State to speak at a partisan convention for either of the political parties,” Democrats said, adding, “It appears that it may also be illegal.”

Vice President Mike Pence finally appeared, emphasizing the need for America to talk out its differences, which contrasts with how Trump has approached the presidency.

Republicans appear to be aiming tonight at women—especially suburban women—a voting bloc that Trump’s record and his personal history make more difficult to win than it would be for most presidents. In general this evening feels better produced than the first night.

—The writer has worked in senior positions at The Washington Post, NBC, ABC and CNN and also consults for several Indian channels

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