Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Daily Reckoning (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

The Truth About Donald Trump’s Taxes

% of readers think this story is Fact. Add your two cents.


This post The Truth About Donald Trump’s Taxes appeared first on Daily Reckoning.

The left’s favorite billionaire, Warren Buffett, made news last week for attacking Donald Trump on his taxes.

Buffett was sore because Trump, who acknowledged taking large tax deductions in the second presidential debate, said Warren does the same.

Buffett released his tax data to the media to refute Trump. And he challenged Trump to meet him “any place, any time” to share tax returns and answer questions.

But Warren better be careful what he asks for.

That’s because the folksy billionaire has some IRS skeletons hidden in his closet…

Organized Theft

Trump’s been pounded for not paying taxes by Hillary Clinton’s media comrades in arms in recent weeks.

What’s his great sin? Following the tax code.

He took a massive a $916 million loss in 1995. The tax code allows you to carry such losses forward to offset earnings in later years. And that’s just what he did.

Look, this isn’t some defense of Trump. Frankly, his tax records are none of my business.

What is my business is the perverse belief that American citizens have an obligation to give more of their money to the government than required…

Money that will be squandered and used to buy votes by giving free stuff to people.

I don’t accept the Marxist notion that our earnings belong to the State.

What we earn is ours. It is not a gift from benevolent rulers in D.C.

The moral imperative is not for citizens to give more of their hard-earned money to government to waste and use for nefarious purposes. Quite the opposite…

At its core, coercive taxation is theft. It’s collected through force, not exchange or persuasion.

So the moral duty is on the government to keep it to a minimum.

And the last person who should be arguing otherwise is a raging hypocrite like Buffett…

Warren’s Tax Racket

For years, Buffett has signaled his own virtue by calling for tax increases on wealthy Americans… all the while using the tax code to pay a ridiculously small amount in federal taxes himself.

Here’s how his “inside baseball” works…

Much of Buffett’s $64 billion fortune is tied up in his company, Berkshire Hathaway.

Berkshire hasn’t paid any cash dividends in decades. Instead, it uses its income to acquire companies. And when it does, it stops any dividends and keeps that money to buy more companies.

For example, Berkshire acquired Burlington Northern Santa Fe in 2010. At the time, Burlington paid roughly $550 million in dividends to shareholders. But Berkshire stopped that and kept that cash in house.

That nails retirees who rely on dividend income. But it’s great for Berkshire and Buffett.

Barron’s reported that had Berkshire paid out the average of the S&P 500 companies in 2014, it would have distributed roughly $6 billion in dividends.

Buffett would have received $1.2 billion of that, for a tax bill of $280 million.

But estimates have him paying roughly 1/40th of that amount by keeping his wealth in the company and immune from the income tax rates us regulars in the peasant class are burdened with.

And that’s just one transaction. Berkshire’s business model is built on scores of tax-advantageous deals and operations.

Barron’s reporter Morris Propp nailed it when he wrote: “It seems that Buffett and his businesses are serial deprivers of tax revenue to the U.S. Treasury. Yet that does not deter him from loudly advocating higher income tax rates for others.”

Let me be clear, I don’t begrudge Buffett for legally following the tax code. More power to him. The government has no claim to his wealth.

I just want him off of his high horse by taking others to task for doing the same.

Because as Ron Paul said so eloquently: “One thing is clear: The Founding Fathers never intended a nation where citizens would pay nearly half of everything they earn to the government.”

Please send your comments to me at [email protected]. Let me know what you think of today’s issue.

Regards,

Michael Covel
for The Daily Reckoning

Ed. Note: The most entertaining and informative 15-minute read of your day. That describes the free daily email edition of The Daily Reckoning. It breaks down the complex worlds of finance, politics and culture to bring you cutting-edge analysis of the day’s most important events. In a way you’re sure to find entertaining… even risqué at times. Click here now to sign up for FREE.

The post The Truth About Donald Trump’s Taxes appeared first on Daily Reckoning.

This story originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.


Source: http://dailyreckoning.com/truth-donald-trumps-taxes/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.