Trump May Have Paid Little to No Income Taxes in Early ’90s: Report
According to a new report by POLITICO, Donald Trump likely paid little or no income taxes during two years in the 1990s.
The Hill reports:
At that time, Trump’s hotel and casino holdings were struggling and the businessman was making deals to stay afloat. Lenders were canceling some or all of Trump’s debt, which may have led Trump to realize taxable gains.
However, Trump’s business losses were so large that they could offset the taxes, Politico reported Friday, citing documents from New Jersey gambling authorities.
In 1991 Trump had a net operating loss carryforward that was likely to cause him to owe little or no taxes on the gains. In 1993, the billionaire’s loss carryforward was more than enough to prevent him from having to pay taxes on the gains, Politico reported.
This is not the first media report finding that Trump has not owed income taxes in the past. Last month, The Washington Post reported he was able to pay no federal income tax in 1978 and 1979 by taking advantage of a tax break for developers that allowed him to report negative income.
Trump’s taxes have garnered interest because the candidate has refused to release his tax returns, breaking with a practice that presidential candidates have followed since Watergate.
The real estate tycoon has said that he will only release his returns after the Internal Revenue Service is done auditing him. But the IRS has said that an audit does not prevent anyone from releasing his or her own tax information.
Democrats have been attacking Trump for his refusal to release his returns.
The campaign of presumptive Democratic presidential nominee Hillary Clinton, who has made more than 30 years of her returns public, has released a video that asks what Trump is hiding. And several Democratic senators, including Sen. Ron Wyden (D-Ore.), have sponsored legislation to require presidential nominees to release their returns.
Several Republicans, including 2012 Republican presidential nominee Mitt Romney and Senate Majority Leader Mitch McConnell (R-Ky.), have also said that Trump should release his returns.
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