- Trump paid no taxes between years 2000 and 2015.
- The president’s debts are in excess of $300 million.
- The president has a net worth of over $1 billion.
Rep. Nancy Pelosi (D-CA), Speaker of the US House of Representatives, has said that President Trump’s tax records are a national security matter. Her statement came just a day after the disclosure of US President Donald Trump’s tax records by The New York Times.
The report revealed that he only paid $750 in taxes in years 2016 and 2017. Speaking at the Capitol earlier this week, she argued that his debts to unknown entities should be scrutinized.
The President, who has on many occasions hit back at critics for asking him to publicize his tax records, has consistently made the argument that his taxes are under audit by the Internal Revenue Service (IRS), thereby preventing him from talking about them.
According to the New York Times expose, he has been able to pay very little in taxes because he supposedly owes foreign entities some $300 million. There are fears that the entities could be companies tied to the Kremlin and adversarial nations that could put pressure on him.
According to Speaker Pelosi, this makes his debts a national security matter, adding, “The fact that you could have a sitting president who owes hundreds of millions of dollars that he’s personally guaranteed to lenders, and we don’t know who these lenders are.” She also suggested that the president may be indebted to the Russians.
The explosive report published by the Times covered over two decades of the president’s tax records. It reveals that he paid no income taxes between years 2000 and 2015. It highlights that he is personally responsible for over $300 million in loans, many of which are due in the next four years.
Despite the fears that his loans might be tied to the Kremlin, the report indicates that there is no evidence to suggest this. It, however, discloses that Trump derives some income from foreign sources.
Some financial analysts have argued that the low taxes paid by the president is resounding evidence that he is either exceptionally bad at managing his company’s resources or very good at avoiding high taxes. Much of the evidence points to the president being good at abusing the American tax system.
How a Billionaire Can Pay Just $750 in Taxes
The US tax system allows individuals who derive their earnings from dividends instead of salaries to only pay taxes when the company that they have invested in makes a profit and pays out dividends. On Trump’s remarks on the latest tax report, he has dismissed it as fake news, stating:
“Actually I paid tax. And you’ll see that as soon as my tax returns – it’s under audit, they’ve been under audit for a long time. The IRS [Internal Revenue Service] does not treat me well … they treat me very badly.”