•   
  •   

World Trump taxes: A 'fundamentally unfair' system?

04:45  14 october  2020
04:45  14 october  2020 Source:   bbc.com

Doctors plan to discharge Trump from Walter Reed as early as TOMORROW

  Doctors plan to discharge Trump from Walter Reed as early as TOMORROW The president's doctors said he could be discharged from Walter Reed Monday as Trump's top physician detailed he was given a steroid and put on oxygen as a treatment for COVID-19. 'Our plan for today is to have him to eat and drink, be up out of bed as much as possible, to be mobile,' Dr. Brian Garibaldi, one of the doctor's on Trump's team, said. 'And if he continues to look and feel as well as he does today, our hope is that we can plan for a discharge as early as tomorrow to the White House where he can continue his treatment course.

"The whole system is so fundamentally unfair ," says Mr Pearl, now chairman of the Patriotic Millionaires, a group of wealthy Americans that backs higher taxes on the rich. "How much tax I pay has absolutely nothing to do with how much money any normal person would say I made."

The New York State Tax Department has confirmed it is investigating claims by the New York Times that President Trump helped his parents dodge millions of dollars in taxes . The paper has alleged that the president was involved in "dubious tax schemes during the 1990s, including instances of outright

For years, US President Donald Trump has shrugged off criticism of his low tax bills, famously boasting that not paying taxes made him "smart".

Donald Trump wearing a suit and tie © Getty Images

"Like every other private person, unless they're stupid, they go through the laws, and that's what it is," he said during last month's presidential debate, when confronted over the New York Times report that he had paid just $750 in income taxes to the federal government in 2016 and 2017, and for 10 years, paid nothing at all.

Trump will remain on steroids and remdesivir inside the White House

  Trump will remain on steroids and remdesivir inside the White House Donald Trump will continue receiving treatment for COVID-19 at the White House, with his course of the steroid dexamethasone continuing and his final dose of remdesivir to be given on Tuesday.The president received oxygen on Friday in the White House, and medics will be ready in case he needs it again.

"Donald J. Trump declared a 6 million loss on his 1995 income tax returns, a tax deduction so substantial it could have allowed him to legally avoid paying any federal income taxes for up to 18 years, records obtained by The New York Times show.

President Donald Trump may be able to mandate a payroll tax holiday through an executive order, but employers may be unwilling to comply unless they can count on forgiveness of those taxes , experts President Donald Trump apparently doesn’t have to wait for Congress to act on a payroll tax holiday.

So how unusual is his tale?

In the US, Mr Trump's route to such low sums, using business losses and expenses such as haircuts to offset other gains, has raised legal questions, triggering investigations by tax officials and authorities in New York.

And in other countries, Mr Trump might find it harder to deploy such strategies so freely, says Andy Summers, professor of law at the London School of Economics.

The UK, for example, has rules that limit how much losses in one business can be used to offset gains elsewhere.

All that suggests Mr Trump is a special case, not withstanding research finding higher rates of tax evasion among the super-rich.

But in other ways, tax experts say, Mr Trump has a point. Many of the world's wealthy pay less than what official tax rates might imply - with no need to resort to tricky tactics at all.

How the Trump campaign is trying to dig its way out of Trump’s Covid-19 diagnosis

  How the Trump campaign is trying to dig its way out of Trump’s Covid-19 diagnosis Trump’s Covid-19 diagnosis is bad. His allies are trying anything to fix that.President Donald Trump has tested positive for the coronavirus. As has former New Jersey Gov. Chris Christie and White House press secretary Kayleigh McEnany, Republican Sens. Mike Lee of Utah and Thom Tillis of North Carolina, former senior White House counselor Kellyanne Conway, and Trump campaign manager Bill Stepien, among other officials.

has constantly criticized the tax system for being unfair the times wrote " trump is right when he says the system is rigged what he doesn't say is that it's rigged in his favor and in the favor of people like him and against regular people -those of us who earn money pay income tax on it and financially support

When it came to payroll taxes , Trump ’s order said this: “This modest, targeted action will put money directly in the pockets of American workers and Steve Wamhoff, the director of federal tax policy at the left-leaning Institute of Taxation and Economic Policy, was also skeptical. “If your goal is to

a group of people holding a sign: Donald Trump's refusal to release his taxes has been a source of political controversy © Reuters Donald Trump's refusal to release his taxes has been a source of political controversy

"It's not, 'Oh there's one person who's doing it,'" says Arun Advani, a professor of economics at Warwick University, who has examined taxes in the UK. "It's actually a relatively common experience."

Wage earnings hit harder

In the UK, a quarter of those earning between £5m and £10m in income and capital gains paid an effective average tax rate of just 11%, Prof Advani and Prof Summer found looking at recent tax data. That was not just lower than the official top income tax rate of 47%, but lower than the rate charged on someone earning just £15,000.

In the US, the 400 richest American billionaires paid an average overall tax rate of 23% in 2018 - lower than the 24% rate paid by the bottom half of households, economists at the University of California - Berkeley estimated in a 2019 paper.

Even while sick with Covid-19, Trump sees masks as a symbol of weakness

  Even while sick with Covid-19, Trump sees masks as a symbol of weakness President Donald Trump’s erratic behavior fits what behavioral scientists call “precarious masculinity.” BREAKING: Pres. Trump arrives back at the White House, and removes his mask, following several nights at Walter Reed Medical Center. The president left Walter Reed this evening despite not having completed his full COVID-19 treatment. https://t.co/XCER5YMh2e pic.twitter.com/rTfKo35d4G— ABC News (@ABC) October 5, 2020 It’s the idea that traditionally masculine ideals — toughness, strength, power, virility — are hard to achieve as well as hard to maintain.

In which John Green compares the tax proposals of Hillary Clinton and Donald Trump , and looks at what the tax system and budget would look like for

Taxes . Credit Cards. Taxes . Social Security. To help fix a student-loan system he calls “ fundamentally broken,” Johnson is proposing debt forgiveness up to ,000 per borrower — which works out to an approximate 5 billion debt cancellation.

  • Donald Trump 'paid $750 in federal income taxes'
  • Do voters care about Trump taxes?
  • What you need to know about the Trump tax story

The difference between the headline rates and what governments actually collected was driven by laws that hit wages and salaries with higher tax rates than other types of income, such as property and stock market investments, which belong disproportionately to the rich.

a man wearing glasses and smiling at the camera: Morris Pearl says how much tax he pays has nothing to do with his real gains © Morris Pearl Morris Pearl says how much tax he pays has nothing to do with his real gains

Former New York banker Morris Pearl, 60, who has described his fortune as in the "tens of millions", says his federal income tax rate is in the high teens - far lower than America's official rate on top earners of 37%. That's despite strong gains in recent years in his stock market investments, which he has relied on for income since retiring from his job at investment giant Blackrock in 2013.

"The whole system is so fundamentally unfair," says Mr Pearl, now chairman of the Patriotic Millionaires, a group of wealthy Americans that backs higher taxes on the rich. "How much tax I pay has absolutely nothing to do with how much money any normal person would say I made."

Photos of Trump’s reckless activities, ranked by their Covid-19 risk

  Photos of Trump’s reckless activities, ranked by their Covid-19 risk Was the Rose Garden event more dangerous? Or the Gold Star families reception?But which Trump moment was the worst offender for coronavirus exposure? The massive Rose Garden ceremony announcing his nomination of Judge Amy Coney Barrett to the Supreme Court? The debate at the Cleveland Clinic where his family members and aides refused to abide by mask-wearing guidelines? The limo ride outside Walter Reed National Military Medical Center to wave at his supporters outside the hospital?

President Donald Trump speaks about tax reform at a rally in Springfield, Missouri. Facebook's Nick Clegg: Calling Facebook's new rules not ambitious or piecemeal is unfair .

Amazon's stock took a hit after a report that regulations may be coming.

Inequality driver?

Since the 1980s, official tax rates on top earners have generally fallen in developed countries, never recovering from the cuts ushered in during the rightward political turn that swept global policy circles during the Ronald Reagan and Margaret Thatcher era. While some countries have shifted the income level at which the top rate kicks in, or raised rates following the global financial crisis, the overall downward trend remains.

chart, line chart © BBC

And most countries - even famously high-tax Denmark - have opted to reward investments and property with lower tax rates.

Advocates of the policies say they encourage investment, helping to spur growth and job creation. And they note that the rich still account for a disproportionate share of income collected by the government.

But it's a set-up that is increasingly being blamed for fuelling inequality and political instability.

a man wearing glasses and smiling at the camera: Danish millionaire Djaffar Shalchi has founded Human Act, which campaigns for raising taxes on the wealthy among other things © Djaffar Shalchi Danish millionaire Djaffar Shalchi has founded Human Act, which campaigns for raising taxes on the wealthy among other things

Last summer, Mr Pearl helped to organise a letter from some of the world's richest, urging governments to raise taxes on the wealthy to help pay for the coronavirus pandemic.

Their cry has helped to drive political debates in the US, UK and elsewhere.

5 years of hate

  5 years of hate A comprehensive timeline of Donald Trump encouraging hate groups and political violence.While Trump’s refusal to condemn white supremacists was the talk of the debate, his decision to skirt the subject is precisely in line with how he’s historically addressed violence on the part of hate groups and his supporters: He emboldens it.

Another organiser of the letter, Djaffar Shalchi, a property and construction magnate in Denmark, says even his famously progressive country has seen its tax code become less so over time. He wants to see it reinstate a wealth tax to address the disparities.

"If we are not going to address this problem, then we will have the US system, maybe in 20 years," he says. "We are going in that direction."

Buckinghamshire tech entrepreneur Gemma McGough, who describes her fortune as "less than £20m", was one of the letter's UK millionaire signatories.

a person smiling for the camera: Buckinghamshire millionaire Gemma McGough estimates her family paid a roughly 40% tax rate © Gemma McGough Buckinghamshire millionaire Gemma McGough estimates her family paid a roughly 40% tax rate

Ms McGough says she paid a roughly 40% rate last year, on income made primarily from savings and investments.

But when she and her husband sold their first business, Product Compliance Specialists, in 2014, they benefited from UK tax relief for entrepreneurs, which until recently shielded them from some taxes up to £10m in gains from certain business sales.

"I feel quite guilty about having become so wealthy," Ms McGough says. "I didn't feel that way during any of the time that I was running the business... because I felt like it was really hard work.

"It was only later, after we sold that it was like, 'No, there's a lot of people working really long hours,' and most people are not millionaires at the end of it."

Tax policy shift?

Ms McGough, Mr Pearl and Mr Shalchi remain a minority among their class - fighting against the tide of recent policy changes.

The UK cut the top rate on earners in 2013, reversing a rise from just a few years earlier, while the US cut tax rates on the top as recently as 2017.

  • Are US billionaires really going to pay more tax?
  • Disney heir among millionaires urging higher taxes

But since Patriotic Millionaires was founded in 2010, its general aims have won some high-profile endorsements, including from investor Warren Buffett, who called for raising taxes on the rich in 2016, famously noting that his 16% federal income tax rate was lower than his secretary's.

Mr Pearl, whose recent tax payments of nearly $100,000 were still far higher than Mr Trump's, says he's hopeful that outrage over stories like Mr Trump's will force the pendulum of tax policy to start swinging in the other direction.

"It was kind of very abstract before but I think... people are realising that most people are paying a much higher share than some of our wealthiest citizens," he says. "A lot of people have decided that's not fair."

Trump Paid China $188K in Taxes from 2013 to 2015: Report .
Not long before he became president, Donald Trump reportedly paid $188,561 to the Chinese government in taxes, despite paying little to no U.S. income tax in most of the previous decade.Trump paid China $188,561 between 2013 and 2015 through a Chinese bank account controlled by his company Trump International Hotels Management L.L.C., according to a report published Tuesday by The New York Times. The Chinese bank account is said to be one of only three foreign accounts the president maintains, with the other two being located in the U.K. and Ireland.

usr: 1
This is interesting!